India's Sensex and Nifty tumble as oil prices surge on US‑Iran tensions

Crude oil prices jumped to around $85 a barrel after the United States reinstated a naval blockade of Iran and renewed military strikes in the Gulf. The spike lifted Brent crude by more than 2 % and pushed West Texas Intermediate above $80, marking a four‑week high.

The sharp rise in energy costs weighed on Indian markets. The BSE Sensex opened down 0.4‑0.6 % around 77,150‑77,300, while the NSE Nifty slipped about 0.5‑0.6 % to near 24,090‑24,100. Financial and auto stocks led the declines; metal and healthcare indices showed modest gains. Major losers included HCLTech, InterGlobe Aviation (IndiGo), Bajaj Finance, Larsen & Toubro and several banks.

Higher oil prices also pressured the rupee, which fell to 96.16 per U.S. dollar, a 48‑paise depreciation in early trade. Retail inflation for June rose to 4.38 %, above the Reserve Bank of India's 4 % target, raising concerns about future price pressures. Indian 10‑year government bond yields rose past 6.73 % as investors priced in inflation and geopolitical risk.

Analysts warned that continued US‑Iran escalation could keep global markets volatile, sustain higher import bills for India and sustain pressure on the currency and equity market.