US-Iran tensions push oil, Indian markets down

Escalating US-Iran tensions, including the collapse of the June ceasefire, US airstrikes on Iran, Iranian missile fire toward Jordan, and attacks on oil tankers in the Red Sea and Strait of Hormuz, have driven Brent crude prices sharply higher, from around $88 to above $98 per barrel. This has fueled inflation concerns and risk aversion, leading Indian equity benchmarks to fall for four consecutive sessions. The S&P BSE Sensex dropped 1,760 points (2.25%) over four days to close at 76,391.39, while the NIFTY 50 fell 464.7 points (1.90%) to 23,869.60. Banking stocks, particularly HDFC Bank and Axis Bank, were hit hard due to disappointing earnings and margin concerns. The India — Indian rupee weakened to 96.59 per US dollar, pressured by higher oil prices and geopolitical uncertainty, though State Bank of India interventions and measures to attract overseas deposits provided some support. Foreign institutional investors offloaded equities, adding to the selling pressure. Other Asian markets also declined, with Japan's Nikkei 225 and South Korea's KOSPI experiencing significant drops.