- Indian markets opened weak due to renewed US-Iran hostilities.
- US launched third consecutive night of strikes against Iran.
- Strait of Hormuz, vital oil route, faces blockade concerns.
Indian equity benchmarks headed for a weak start on Tuesday as renewed hostilities between the United States and Iran rattled global markets and pushed crude oil prices higher.
The BSE Sensex rang the opening bell near 77,100, bleeding more than 500 points, while the NSE Nifty50 opened trading just above 24k, taking a hit of 150 points, as of 9:15 AM.
GIFT Nifty Signals Weak Start For Indian Markets
The GIFT Nifty pointed to a negative opening for the domestic benchmark indices. Futures were quoted at 24,065, down 179 points*, indicating selling pressure on the Nifty50 at the start of trade.
In the pre-open session at around 9:03 AM, the Sensex stood at 77,354.07, down 262.33 points or 0.34 per cent. The Nifty was at 24,075.95, lower by 135.05 points or 0.56 per cent.
The cautious mood on Dalal Street mirrored weakness across global equities, with investors tracking fresh US military strikes on Iran and Washington’s plan to reinstate a blockade on Iranian shipping through the Strait of Hormuz.
US Launches Fresh Strikes On Iran
Geopolitical concerns intensified after the US military said it had launched another round of attacks on Iran, marking the third consecutive night of strikes as efforts to end the conflict faced fresh uncertainty.
The US Central Command said the latest strikes began at 4:45 PM, or 2045 GMT, and were aimed at imposing further costs on Iranian forces and weakening their ability to target civilians and commercial vessels in the Strait of Hormuz.
The renewed military action comes as the deal to end the conflict appears to be faltering, bringing the strategically important waterway back into focus.
US President Donald Trump also claimed that American military action had significantly weakened Iran’s defence capabilities. Speaking to Newsmax, Trump said much of Iran’s naval, air and weapons infrastructure had been destroyed and claimed the country had been brought “back to the Stone Ages to a large extent”.
Trump further said Iran retained limited military capability and would no longer be able to intimidate the US.
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Strait Of Hormuz Back In Focus
The Strait of Hormuz remained a crucial trigger for energy and equity markets amid the renewed fighting.
More than 8 million barrels of oil passed through the waterway on Sunday with US military assistance, according to the US Energy Department. The department said it would work to ensure oil supplies continued to move despite heightened tensions.
However, shipping traffic through the strategic passage has fallen sharply over the past week, keeping concerns over energy supply disruptions alive.
The latest developments have again raised uncertainty around one of the world’s most important oil transit routes.
Crude Oil Prices Rise On Blockade Concerns
Oil prices moved higher after Trump said Washington would reinstate a blockade on Iranian shipping through the Hormuz.
The July crude oil futures contract was quoted at $84.11, up 0.97 per cent.
Higher crude oil prices remain an important concern for Indian markets, with investors closely monitoring energy costs amid the renewed escalation in West Asia.
Asian Markets Fall As West Asia Risks Return
Most major Asia-Pacific markets traded lower on Tuesday as rising oil prices and geopolitical tensions weighed on investor sentiment.
Japan’s Nikkei 225 fell 0.69 per cent, while South Korea’s Kospi declined 1.78 per cent in early trade.
The weakness across regional equities reflected a broader risk-off mood as traders assessed the latest military developments between Washington and Tehran.
Wall Street Ends Lower
US equities also closed in negative territory overnight.
The Dow Jones Industrial Average declined 0.26 per cent, while the S&P 500 fell 0.79 per cent. The technology-heavy Nasdaq Composite dropped 1.55 per cent, recording the sharpest decline among the three major indices.
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Gold Gains, Silver Slips
Precious metals traded on a mixed note amid the heightened geopolitical uncertainty.
Gold futures gained 0.42 per cent, while silver futures declined 0.3 per cent.
