Oil Breaches $100, Indian Markets Drop for Fifth Day Amid West Asia Crisis
Indian shares opened lower on Friday as Brent crude oil surged above USD 100 per barrel, driven by escalating tensions in West Asia. The benchmark indices extended losses for a fifth consecutive session, reflecting heightened investor concern over the economic impact of rising energy costs.
The Sensex fell 512.07 points to 75,869.38 in early trade, while the Nifty dropped 153 points to 23,713.60. By 9.15 am IST, the Nifty was down 0.85% at 23,666.35 and the Sensex declined 0.89% to 75,708.19. The decline was triggered after US President Donald Trump warned of “major military punishment” for Iran and its Houthi allies, following attacks on two Saudi oil tankers in the Red Sea.
Higher oil prices pose a significant risk for India, the world's third-largest crude importer and consumer. The increase could stoke inflation, widen the trade deficit, and squeeze economic growth and corporate margins. Analysts have cautioned that sustained high oil prices may force the Reserve Bank of India to reconsider its monetary policy stance.
The West Asia crisis has added to global economic uncertainties, with investors closely monitoring developments. Market participants are advised to remain cautious amid the volatile geopolitical landscape.
