Middle East crisis takes toll on India; stock market plunges

NEW DELHI: Escalating tensions in the Middle East have impacted the Indian stock market, following U.S. airstrikes on three nuclear facilities in Iran. Domestic stock indices plummeted during early trading hours. Although the Sensex initially rose by around 500 points, it quickly tumbled by over 800 points. The Nifty also declined by nearly 250 points.

Major companies such as Infosys, HCL Tech, Hindustan Unilever, and TCS recorded significant losses. The downturn in Indian markets was attributed to a global economic slowdown and growing concerns that the conflict could disrupt energy markets. Investors fear that if Iran decides to close the strategic Strait of Hormuz—one of the world’s key oil transit routes—crude oil prices could soar to record levels. Oil prices rose by 2% today alone.

The surge in oil prices also rattled currency markets. The Indian rupee depreciated by 17 paise against the U.S. dollar, falling to 86.72. Iran is the world’s ninth-largest oil producer. Tehran had refused to engage in discussions over its nuclear program until Israel halts its military actions. In response, the U.S. launched airstrikes early yesterday morning on Iran’s three main nuclear facilities—Fordow, Natanz, and Isfahan—using bomber jets.

Satellite imagery released later in the evening confirmed visible damage at all three locations. However, experts suggest that Iran may have already moved its nuclear stockpile from these sites.