Stock Market Crash LIVE: The benchmark Indian equity indices, Sensex and Nifty 50, are likely to open on a weak note on Monday, tracking subdued global cues after U.S.-Iran ceasefire negotiations broke down and crude oil prices surged, heightening concerns that the Middle East conflict could drag on longer than anticipated.
U.S.-Iran talks held over the weekend in Islamabad failed to produce a breakthrough, casting doubt on the fragile two-week ceasefire. The U.S. Central Command said American forces would begin enforcing a blockade on all maritime traffic entering and exiting Iranian ports from 10 a.m. ET (1400 GMT) on Monday.
Gift Nifty was trading around the 23,741 level, a discount of 358 points from the Nifty futures’ previous close, indicating a gap-down start for the Indian stock market indices.
Oil and dollar gains while Asian markets crack
Oil prices surged while equities and bonds declined, as a brief phase of market optimism faded after Donald Trump ordered a blockade of the Strait of Hormuz, intensifying tensions with Iran following the collapse of peace negotiations.
Brent crude rallied 6.8% to trade just below $102 per barrel, amid concerns that the blockade could disrupt energy flows through the critical shipping route. Asian equities weakened, with regional shares slipping 0.7%. Meanwhile, S&P 500 futures trimmed earlier losses but remained down 0.7%, as rising oil prices stoked fears of a drag on global economic growth.
The dollar strengthened against all its Group-of-10 counterparts, extending its safe-haven appeal since the onset of the Middle East conflict. U.S. Treasuries declined, while Japan’s 10-year bond yield climbed to 2.49%—its highest level since 1997—on mounting inflation concerns. Gold fell 0.7% to around $4,710 per ounce, as elevated oil prices reinforced expectations that interest rates could remain higher for longer, pressuring non-yielding assets.
The escalation dampened investor appetite to build on last week’s ceasefire-led rally in equities, leading to a more cautious tone across global markets. However, the relatively moderate decline in stocks at the start of Monday’s session suggests investors are still holding onto cautious optimism that a resolution could emerge and limit the broader fallout of the conflict.
S&P 500 futures were down 0.7% as of 10:34 a.m. Tokyo time. Japan’s Topix slipped 0.2%, Australia’s S&P/ASX 200 declined 0.4%, Hong Kong’s Hang Seng dropped 1.1%, the Shanghai Composite edged 0.3% lower, and Euro Stoxx 50 futures fell 1.2%.
