Crude oil prices are climbing as geopolitical tensions between the United States and Iran intensify, raising fresh concerns about potential disruptions to global energy supplies.
The escalating friction has triggered a risk-off sentiment across global markets, with investors closely monitoring the situation for signs of further escalation that could impact shipping routes and production facilities in the region.
The surge in energy costs is acting as a headwind for equity markets, particularly in emerging economies with high import dependencies.
Indian benchmark indices, which reversed their recent upward trajectory on Wednesday, are expected to open cautiously on Thursday.
The Gift Nifty, a proxy for the Nifty 50 futures, was trading at a slight premium of nearly 39 points to the previous close, suggesting a mildly positive but tentative start for domestic equities despite the broader global uncertainty.
The market reaction underscores the sensitivity of current valuations to geopolitical shocks.