Oil shock hits Dalal Street! Sensex sinks over 450 points as US-Iran tensions ignite market fears

The BSE Sensex fell over 450 points in early trade, while the NSE Nifty 50 slipped 0.6 percent to around 23,081.

Infosys and HDFC Bank emerged among the top laggards during the opening session.

Fresh US-Iran Escalation Fuels Oil Rally

Market sentiment turned cautious after the United States launched fresh strikes on Iranian targets for a second consecutive day, triggering fears of a wider conflict in the region.

In response, Iran announced the closure of the strategically crucial Strait of Hormuz, a key route for global oil shipments, raising concerns over potential supply disruptions.

The escalating tensions pushed Brent crude prices above $95 per barrel, with oil gaining more than 2 percent in Asian trade.

Analysts warned that prolonged disruptions in the region could further elevate energy costs and pressure global markets.

Global Cues Weigh on Domestic Equities

Asian markets also traded lower as investors assessed the impact of rising crude prices, geopolitical uncertainty, and concerns over higher interest rates in the United States.

The spike in oil prices is particularly significant for India, one of the world's largest crude importers, as it could widen the trade deficit and add to inflationary pressures.

Market participants will closely monitor developments in the US-Iran conflict and crude oil movements for further direction through the trading session.