Several significant developments occurred in the third week of March as we head towards the next financial year. On a global front, the US-Iran war kept geopolitics buzzing, also impacting the crude oil prices and LPG availability, while the US Federal Reserve signalled maintained the key interest rates. Meanwhile, in India, HDFC Bank interim chairman's resignation, stock market crash were few of the key domestic developments this week.
Here's a recap of the week
US-Iran War
The escalating tensions in the Middle East between the US, Israel, and Iran showed no sign of slowdown this week. Iran confirmed the death of its security chief, Ali Larijani, in an Israeli air strike late Tuesday night. Larijani was the highest-level Iranian official to be killed by Israel since Ayatollah Khamenei. While Iran vowed to seek revenge over the death of its key leader, the US President issued a 48-hour ultimatum to Iran and threatened to obliterate power plants if Tehran doesn't open the Strait of Hormuz within 48 hours.
This week also witnessed Israel targeting Iran's South Pars field and associated infrastructure, resulting in a fresh wave of Iranian strikes across the region, including Saudi Arabia, Qatar, and the United Arab Emirates, pushing crude and gas prices higher.
Brent Crude Soars
Amid the Middle East conflict, the prices of oil and natural gas continued to soar, with attacks in the Persian Gulf threatening long-term damage to major energy facilities. European gas futures jumped as much as 35% to more than double their pre-war level. Brent crude touched $119 a barrel, close to its highest since 2022, and European diesel futures reached $190 a barrel.
Federal Reserve's Decision
The US Federal Reserve has kept its key interest rate unchanged for the second consecutive time. The Federal Open Market Committee decided to hold its key interest rate at 3.5%-3.75% in March, according to a statement on Wednesday.
"The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run. Uncertainty about the economic outlook remains elevated," the Fed said in its statement on Wednesday.
ALSO READ: Fed's Waller Cautious On Oil, May Advocate Rate Cuts Later
HDFC Interim Chairman Resigns
Atanu Chakraborty stepped down as part-time chairman of HDFC Bank Ltd. on Wednesday, citing concerns over practices that were not aligned with his personal values and ethics. He said that his decision was driven by issues related to principles rather than any operational or material factors, further clarifying that there were “no other material reasons” behind his action.
Stock Market Crash
On Thursday, Nifty breached the 23,000 level, which is the biggest intraday fall since April 7, 2025. Indian markets were under heavy pressure after a sudden resignation at HDFC Bank and tensions in the Middle East. All sectors ended in the red, with Nifty Auto falling over 4%, followed by Realty Financial Services and Defence, ending over 3.5%.
ALSO READ: Nifty Ends At 23,000, Sensex Down 2,500 Points — Three Reasons Why Markets Crashed Today
Rupee Hits Record Low
The Indian rupee crossed the Rs 93 mark this week, hitting a new record low on Friday. The currency nosedived to an unprecedented historic low of 93.28 against the US dollar. On Wednesday, the rupee hit a previous record low of 92.63 amid Middle East tensions and a strong dollar.
ALSO READ: Rupee Hits New Low, Breaching 93 Per US Dollar: Three Reasons Why
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