Brent crude oil is trading above $85 a barrel as investors price in heightened supply disruption risks following a fresh escalation of military strikes between the United States and Iran.
The renewed geopolitical confrontation has triggered a sharp retreat from risk assets across global markets, with equity indices under pressure and foreign portfolio investors accelerating sales in emerging markets.
Indian equity markets are expected to open significantly lower, with the Nifty 50 index projected to gap down by approximately 200 points.
The immediate market reaction reflects deepening anxiety over energy supply chains.
With both nations engaging in military attacks over the weekend, traders are bracing for potential disruptions to key shipping routes and production facilities in the Persian Gulf.
The spike in crude prices is acting as a drag on broader sentiment, particularly in energy-importing economies where higher input costs threaten to erode corporate margins and fuel inflationary pressures.
Indian equity markets are expected to open significantly lower, with the Nifty 50 index projected to gap down by approximately 200 points.