Tensions escalate between Iran and the US over control of the Strait of Hormuz, a crucial shipping lane for global oil supplies, as both sides discuss extending a fragile ceasefire.
The harsh truth is that the US is no longer a reliable partner, cautions Ramesh Menon.
A source familiar with US Treasury Secretary Scott Bessent's thinking revealed on Saturday that the department "intends to utilise all available authorities to make Iranian assets accessible for rebuilding and repair efforts related to any future damage inflicted by Iran."
Iran has presented a multi-layered proposal to the US in an attempt to break the deadlock in peace talks, focusing on de-escalation and nuclear programme discussions.
Analysts predict India will face oil price volatility and macroeconomic effects due to the escalating Iran crisis, though the country's oil supply chain is not yet structurally insecure.
Analysts predict that developments in West Asia, their impact on crude oil prices, and the trading activity of foreign institutional investors (FIIs) will be crucial factors influencing the Indian stock market this week.
Gold and silver prices are expected to remain range-bound this week as investors await crucial US economic data, including the non-farm payrolls report, and further signals from the Federal Reserve regarding its interest rate policy.
Indian benchmark indices, Sensex and Nifty, extended their losses for a second consecutive day, primarily due to HDFC Bank's disappointing quarterly earnings and escalating tensions in West Asia, coupled with persistent foreign fund outflows.
Gold and silver are expected to remain volatile with a corrective bias as investors assess the latest flare-up in the US-Iran conflict, movements in crude oil prices, and inflation data, which could reshape expectations for global interest rates, according to analysts.
The Gulf countries on Monday welcomed a peace deal reached between the US and Iran to end their conflict and called for protection of maritime routes and freedom of international navigation, including the uninterrupted flow of traffic through the Strait of Hormuz.
Indian listed companies experienced their fastest revenue growth in 15 quarters during Q1FY27, with combined net sales rising 18.4% year-on-year, while net profit grew 16%, primarily driven by mining, metals, and banking sectors, despite a contraction in operating margins due to higher input costs.
Fitch Ratings forecasts a 9 per cent aggregate revenue increase for rated Indian corporates in the current fiscal year (FY27), a stronger outlook compared to the 5 per cent estimated for FY26, which is expected to keep credit metrics stable despite potential global and domestic challenges.
US President Donald Trump is set to visit China for talks with President Xi Jinping on trade, global issues, and the Gulf war. The visit aims to address trade frictions and other key issues, with high expectations for progress.
Indian benchmark indices, Sensex and Nifty, extended their rally for the fourth consecutive day, driven by a significant drop in crude oil prices and strong performance from IT firms, despite mixed global cues.
Indian equity benchmark indices Sensex and Nifty closed lower on Thursday, driven by escalating tensions between the US and Iran, persistent foreign fund outflows, and concerns over rising US inflation.
The United States has extended a waiver from sanctions on Russian oil already at sea by one month, according to an official statement from the US Department of the Treasury.
Analysts predict that the US-Iran geopolitical conflict, upcoming quarterly earnings announcements, and fluctuations in crude oil prices will be the primary drivers of investor sentiment in the Indian equity markets.
US President Donald Trump has claimed that Iran's missile capabilities have been severely degraded, saying Tehran now possesses only a fraction of the arsenal it had before recent hostilities.
Foreign Portfolio Investors (FPIs) have injected Rs 16,621 crore into Indian equities during the first half of August, continuing a buying spree driven by improving relative valuations, resilient corporate earnings, and expectations of softer US interest rates.
A US military Apache attack helicopter crashed near the Strait of Hormuz, with its crew successfully rescued, as US President Donald Trump confidently declared an imminent 'total victory' over Iran within two weeks and a new nuclear deal, despite ongoing regional volatility and a recent de-escalation between Iran and Israel.
A high-stakes memorandum for a 60-day ceasefire between the United States and Iran is in its final stages, with negotiators working to close remaining gaps and avert further escalation in the region, including reopening of the Strait of Hormuz and the resumption of Iranian oil sales, according to an Axios report citing US officials.
Despite decades of efforts towards energy transition, oil will remain the critical energy source for all nations for some decades. We can hope for peace opening the Strait of Hormuz, but must prepare for war closing it, points out former foreign secretary Ranjan Mathai.
India's trade deficit reached a six-month high of $31.98 billion in July, driven by a sharp increase in imports, particularly crude oil, electronic goods, coal, and fertilisers. Both merchandise exports and imports recorded their second-highest levels during the same period.
US President Donald Trump announced the 'reinstatement' of an 'Iranian Blockade' in the Strait of Hormuz, stating the US would charge a 20 per cent levy on transiting cargo for providing security, while Iran warned against any US interference, reaffirming its authority over the critical waterway.
In a development that could reshape West Asia's security landscape, US President Donald Trump announced Friday that he will convene an emergency meeting in the White House Situation Room to make a final decision on a broad, multi-part peace deal with Iran.
Indian stock markets are expected to remain highly sensitive to geopolitical developments, particularly the US-Iran situation, and crude oil prices this week, with analysts also highlighting the influence of the rupee-dollar trend, foreign investor activity, and upcoming inflation data.
Indian benchmark indices Sensex and Nifty experienced a significant slump in early trade, mirroring weak global trends, as escalating tensions in West Asia, particularly a drone attack on the UAE's Barakah nuclear facility, pushed crude oil prices higher. Track Sensex, Nifty50 movement and key market drivers for May 18, 2026.
As tensions in the Middle East approach a critical juncture, reports have surfaced regarding a draft memorandum of understanding between the United States and Iran aimed at de-escalating the ongoing conflict, Iranian state media reported on Wednesday.
Gold prices in the national capital fell by Rs 600 to Rs 1.64 lakh per 10 grams, influenced by tentative progress in US-Iran negotiations, which reduced demand for precious metals. However, unresolved tensions surrounding the Strait of Hormuz continue to keep traders cautious.
US President Donald Trump on Monday confirmed that his administration has received a proposal from Iran aimed at ending the ongoing conflict in West Asia, but described the offer as insufficient.
Donald Trump has dismissed the ceasefire with Iran as being on 'massive life support', signalling continued tensions between the US and Iran amid ongoing negotiations.
Uncertainty surrounds the US-Iran talks as a two-week ceasefire approaches its end. Pakistan is attempting to mediate, but tensions remain high after a recent naval incident.
Although extensive air attacks have been carried out to destroy most of Iran's defence capabilities, the latter's resilience and sustenance during the war clearly indicate that the US landing force would encounter severe resistance in the operation, explains Commodore Venugopal Vengalil (retd).
The Indian government has not yet responded to Trump's comments yet.
Trump has made it clear: the US will not lift its blockade of Iranian ports until a deal is signed.
Pakistan, Saudi Arabia and Turkiye on Friday signed a key joint defence agreement under which an attack against one of them will be treated as an attack against all of them, amid increasing security concerns in the wake of escalating tensions in West Asia.
US Secretary of State Marco Rubio said that discussions aimed at halting the conflict with Iran have shown "some slight progress," while simultaneously echoing Washington's dissatisfaction with its NATO allies.
After four consecutive months of withdrawals, Foreign Portfolio Investors (FPIs) injected Rs 20,200 crore into Indian equities in July, driven by attractive valuations, improving corporate earnings, and a more favourable global environment.
India will continue to purchase Russian oil based on commercial viability and energy security needs, irrespective of US sanctions waivers, according to a senior petroleum ministry official.
Iranian Deputy Foreign Minister Kazem Gharibabadi has urged India to take the lead in bringing peace to West Asia, highlighting the UAE's role in stalling BRICS consensus on the conflict. Gharibabadi also discussed a new framework with Oman for merchant vessels passing through the Strait of Hormuz.
