Overview
- On Monday global oil benchmarks fell about 4–6 percent as reports of progress in U.S.-Iran negotiations reduced a Gulf risk premium and lifted Asian and European stocks.
- India’s markets gained strongly with the Sensex up roughly 1,073 points to 76,488.96 and the Nifty ending at 24,031.70 while the rupee strengthened into the mid-95s against the dollar.
- Officials say talks have advanced toward a memorandum that could reopen the Strait of Hormuz but key clauses remain unresolved and President Trump has cautioned negotiators not to rush a deal.
- Analysts warned the rally is fragile because similar negotiation hopes have stalled before and headwinds such as elevated U.S. 10-year yields and continued foreign institutional outflows could reverse gains.
- The Strait of Hormuz carries about one-fifth of global oil shipments so any durable reopening would ease import bills and inflationary pressure for India and could help stem capital flight if the agreement is certified.