Global equity markets are under pressure as investors retreat from risk assets following a fresh escalation of military strikes between the United States and Iran.
The renewed geopolitical tension has triggered a sharp spike in crude oil prices, reversing the recent cooling of geopolitical risks that had supported a modest positive momentum shift across Asian markets earlier in the week.
26% higher, driven by overnight gains in US equities and a perceived de-escalation of tensions.
The risk-off sentiment is expected to weigh heavily on the Indian stock market at the open on Monday.
While the Gift Nifty had previously indicated a flat start for the Nifty 50 and Sensex, trading around the 23,868 level, the sudden deterioration in the Middle East outlook is likely to override those pre-market cues.
Investors are now prioritizing capital preservation amid fears of broader supply chain disruptions and higher energy costs.
This development marks a significant reversal from Tuesday’s session, when the Kospi opened 0.26% higher, driven by overnight gains in US equities and a perceived de-escalation of tensions.