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Oil Surge on USIran Standoff Hits India’s Markets as Wall Street Sets Records

A possible extended US naval blockade near Iran revived an oil risk premium that threatens higher inflation in India.

Overview

  • India’s stock gauges closed lower on Thursday, with the Sensex down 582.86 points to 76,913.50 and the Nifty off 180.10 to 23,997.55 after a steep intraday slide.
  • Brent crude jumped toward $126 a barrel on supply fears tied to the Iran standoff before easing to roughly $114 by late US trade, reflecting a sharp risk premium swing.
  • The rupee hit a record intraday low near 95.33 per US dollar as funding costs for energy imports rose, and India VIX climbed more than 11% to about 19, showing higher stress.
  • Foreign investors sold about Rs 2,468 crore the prior session, metals and state-run banks led the declines, and defensive buying helped IT and pharma limit losses.
  • US stocks ended April at record highs on strong earnings and firm GDP while the Fed kept rates unchanged, underscoring a split between resilient US indexes and pressure on oil‑importing markets like India.