- Nifty fell over 1% to 23,927 amid Middle East geopolitical tensions and US-Iran standoff
- Sensex dropped 1.1% to 76,800 with all sectors trading lower, IT down nearly 4%
- US-Iran conflict disrupts Strait of Hormuz, choking 20% of global oil trade flows
Nifty, Sensex are under pressure in Friday's trade on the back of unsettled geopolitical tensions in the Middle East, and faltering talks between the US and Iran heightened fears of prolonged crude supply disruptions in the Persian Gulf. Nifty is trading with cuts of over 1% (around 240 points lower) at 23,927. Sensex, meanwhile, is also 1.1% lower (860 points lower) at 76,800, as of 11 am.
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All sectors are trading in red, with Nifty IT treading almost 4% lower, followed by Defence and Media down nearly 1.5% lower.
The broader market is facing pressure too, with the Nifty Smallcap 250 falling almost 1.25%, and the Nifty Midcap 150 dropping about 1.13%.
Here are three key reasons dragging the markets on Thursday.
Middle East Tensions
US President Donald Trump said “I don't want to rush myself,” adding that Iran's leadership is in “turmoil.” In an Oval Office exchange with reporters, he also pushed back on questions that the conflict is exceeding the four-to-six week timeline he and aides previously set for the war.
Trump has ordered the US military to “shoot and kill” Iranian small boats choking the Strait of Hormuz. Later he said Israel and Lebanon agreed to extend a ceasefire between Israel and Hezbollah by three weeks after talks at the White House. The meeting on Thursday was the second high-level negotiation between the two countries since last week.
The standoff between the US and Iran has effectively choked off nearly all exports through the Strait of Hormuz, where 20% of the world's traded oil passes in peacetime, with no end in sight.
Get the latest updates on the US-Iran conflict here.
Crude Prices
Oil prices extended gains for a fifth consecutive day — the longest rally since January — as faltering talks between the US and Iran heightened fears of prolonged supply disruptions in the Persian Gulf. Brent crude for June settlement rose 1.1% to $106.20 a barrel, pushing weekly gains to about 17%, while WTI for June delivery climbed 0.96% to $96.77, holding near the $97 mark.
Markets remain on edge as US President Donald Trump continues to back a naval blockade of Iranian ports, a move seen as a key sticking point in negotiations. Recent statements and social media posts from Trump — including warnings of military action against vessels in the Strait of Hormuz — have further dampened prospects for a breakthrough. Reports also indicate US forces boarded a supertanker carrying Iranian oil, signalling an intensification of enforcement actions.
Weak Global Cues
Most Asian stock markets were down as investors remained cautious despite a three-week extension of the Israel-Lebanon ceasefire. The two countries agreed to extend their ceasefire by three weeks following a meeting in the White House with top US officials, President Donald Trump.
The MSCI Asia Pacific index was flat. Japan's benchmark Nikkei 225 gained as much as 0.9% while the Topix rose 0.4% after core inflation in the country accelerated for the first time in five months with Iran war fueling energy worries. South Korea's Kospi was down 0.6%, Hang Seng fell 0.2% and the CSI 300 dropped 0.8%.
Get the latest updates on the stock market here.
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