Middle East Tensions Rock Markets: Sensex Crashes 2,000 Points, Nifty Slips Below 23,900
Rising oil prices amid Iran-Israel-United States conflict trigger global market panic; Asian markets and Indian equities see sharp sell-off.
India’s benchmark stock indices witnessed a sharp decline on Monday as escalating geopolitical tensions in the Middle East rattled global markets. The benchmark BSE Sensex plunged nearly 2,000 points, while the Nifty 50 fell about 500 points to slip below the 23,900 mark during early trade.
The sell-off came after growing tensions between Iran, Israel and the United States intensified fears of a wider conflict in the Middle East. Investors across global markets reacted sharply as crude oil prices surged due to concerns over possible disruptions in supply.
Banking stocks were also hit hard, with the Nifty Bank dropping nearly 2,100 points. The sharp fall reflected growing uncertainty among investors amid rising geopolitical risks and increasing energy prices.
Crude Oil Prices Surge
Crude oil prices jumped significantly as tensions escalated in the Middle East. The benchmark Brent Crude rose nearly 20 percent to cross 110 dollars per barrel. This marks the first time since June 2022 that oil prices have reached such levels.
Supply concerns increased after disruptions in shipping routes through the Strait of Hormuz, one of the world’s most critical oil transit points. Reports also indicated that Kuwait reduced production significantly, while United Arab Emirates and Iraq also cut output.
Energy officials in Qatar warned that if the conflict continues, crude oil prices could surge as high as 150 dollars per barrel.
Asian Markets Under Pressure
The impact of rising oil prices and geopolitical uncertainty was also seen across Asian markets. Stock exchanges in Japan and South Korea recorded declines of nearly 7 to 8 percent.
The Gift Nifty had already signaled a weak opening for Indian markets as it slipped nearly 800 points to fall below 23,800. Meanwhile, futures on the Dow Jones Industrial Average also dropped around 900 points, indicating pressure on global equities.
Foreign Investors Continue Selling
Another major factor behind the market fall was heavy selling by foreign institutional investors (FIIs). On Friday, FIIs sold equities worth nearly ₹9,459 crore across the cash market, index futures and stock futures. This marked their sixth consecutive day of selling.
However, domestic institutional investors (DIIs) provided some support to the market by purchasing shares worth about ₹6,972 crore, marking their eighth consecutive day of buying.
Israel-Iran Conflict Intensifies
Meanwhile, tensions between Israel and Iran continue to escalate. Reports suggest that Israeli forces targeted an oil facility in Tehran. In response, Iran expressed regret over attacks on Gulf nations but warned that it would retaliate if further actions were taken against it.
