- Indian equity markets face a gap-down opening with GIFT Nifty down 1.5% at 22,785
- US President Trump set a deadline for Iran to reopen the Strait of Hormuz by 8 p.m. ET
- Wall Street opened lower with Nasdaq down 1.55% and S&P 500 trading 1% lower
Indian equity markets are looking at a gap-down opening as GIFT Nifty, the country's early market indicator fell as low as 1.5% to 22,785 on Tuesday evening.
As of 9 p.m. IST, the market indicator showed 0.82% or nearly 200 points lower opening at 22,948.
The fall came as US President Donald Trump's deadline for Iran to open the Strait of Hormuz approached its end. Trump has warned of massive escalation in the war, if Tehran does not comply to the demand.
Jitters of Trump's hardening war rhetoric were felt by Wall Street investors as well as the US stock market opened in the red on Tuesday.
As of 11 a.m. EST, tech-heavy Nasdaq Composite had slumped sharply by 1.55% to 21,656.35,wider index S&P 500 traded 1% lower at 6,546.37, and the Dow Jones Industrial Average shed over 300 points or 0.75% to trade at 46,320.41.
Middle East On The Boil
Besides the obvious dangers of the conflict, spiking crude oil prices, vulnerable air spaces, and shifting economic concerns; a crucial lever has been statements made by the warring parties.
Mixed signals have consistently emerged regarding the war, with the US administration claiming that the ongoing ceasefire negotiations with Iran have been "positive" so far. While, at the same time, the Iranian side has reportedly stopped all negotiations with Washington.
Trump has given Iran until 8 p.m. ET to accept an agreement that includes reopening the Strait of Hormuz. During an phone interview with Fox News, Trump remarked that "8 p.m. is happening."
A senior US official told Fox News that, althought negotiations for a ceasefire have been positive thus far, it remains to be seen "whether an agreement can be made in time to meet President Donald Trump's deadline."
In case Tehran rejects the agreement, Trump has threatened to "drastically" escalate the conflict by targeting the nation's power plants and transportation infrastructure.
To retaliate, Iran's IRGC warned that they will target US-affiliated infrastructure "in a manner that will deprive America and its allies of the region's oil and gas for years."
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