- Middle East tensions caused global equity markets to fall.
Global crude oil prices dropped more than 1 per cent on Thursday after Israel and Lebanon agreed to a ceasefire, giving investors their first real reason for optimism in days amid a conflict that has kept energy markets on edge.
Brent crude, the international oil benchmark, fell 1.33 per cent to $96.50 per barrel. US West Texas Intermediate (WTI) crude declined over 1 per cent to $94.76 per barrel.
The retreat came just a day after both benchmarks had surged close to 2 per cent, reported IANS. That rally was fuelled by a sharp flare-up in hostilities, including Iranian attacks on Kuwait and US military strikes close to the Strait of Hormuz, a marine chokepoint through which a large share of the world’s oil supply is shipped daily. Any disruption in the Strait tends to push crude prices higher almost immediately.
Iran-US Negotiations: Talks Ongoing, No Deal Yet
In the United States, the Republican-controlled House of Representatives passed a resolution seeking to limit President Donald Trump’s authority to carry on military operations against Iran. Despite the legislative pushback, Trump said he expected meaningful progress in talks with Tehran to emerge as early as this weekend.
Iranian Foreign Minister Abbas Araqchi confirmed that communication channels with Washington remained open. He said both sides were still reviewing proposals that had been exchanged, though he was careful to add that discussions had not yet produced any concrete results.
The signals from both capitals suggest neither side has walked away from the table. This development, combined with the Israel-Lebanon ceasefire, moved oil prices lower on Thursday.
Iranian Drones Target Kuwait Airport, Flights Suspended
The diplomatic signals, however, offered little comfort on the ground. Iranian drones struck Kuwait International Airport following a fresh round of strikes between the United States and Iran. Several people were injured in the attack, and airport infrastructure sustained damage. The Kuwaiti military said the strike caused significant material damage, and authorities were forced to suspend air traffic operations.
The attack illustrated how quickly the situation can shift, even as world leaders push for a negotiated exit.
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Indian And Global Markets Open Lower
The tensions in West Asia pulled global equity markets into the red. Major Asian indices fell sharply on Thursday, with Japan’s Nikkei, Hong Kong’s Hang Seng, South Korea’s KOSPI and Indonesia’s Jakarta Composite each shedding as much as 3 per cent.
US markets had also closed lower overnight. The S&P 500 ended 0.74 per cent lower, while the Nasdaq fell 0.9 per cent.
Indian benchmark indices Sensex and Nifty also opened lower, each declining around 0.5 per cent. Selling pressure was concentrated in IT, realty, pharma and healthcare stocks.
What To Watch In The Coming Days
The coming days will be critical. Trump has indicated that talks with Iran could yield results over the weekend. If that happens, and if the Israel-Lebanon ceasefire holds, oil prices could soften further. But any new escalation, particularly around the Strait of Hormuz, could quickly reverse those gains and add fresh pressure on import-dependent economies like India.
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