Indian markets on Dalal Street rallied sharply as easing tensions in the US-Iran conflict and stable oil prices boosted sentiment. Track Nifty 50 and BSE Sensex performance and key global triggers.
A recently finalised peace deal between the US and Iran, set to be signed on June 19, is expected to significantly benefit India's economy by boosting exports to West Asia, stabilising the rupee, and easing inflationary pressures, according to exporters and experts.
Iran has formally turned down a proposal from the United States for a 48-hour ceasefire, according to Al Jazeera, citing reports from the semi-official Fars news agency.
Tensions escalate between Iran and the US following an attack on an Iranian commercial vessel in the Sea of Oman, with both sides trading accusations over maritime security and ceasefire violations.
US President Donald Trump said the United States faces a stark choice in its approach to Iran, either to pursue a negotiated settlement or escalate militarily, as tensions continue to rise in the West Asia region.
The Indian equity market is set for an event-heavy week, with analysts pointing to the Reserve Bank of India's (RBI) interest rate decision, developments in the US-Iran situation, and crude oil prices as the primary determinants of market trends.
Indian benchmark indices Sensex and Nifty experienced a decline due to renewed geopolitical concerns in the Strait of Hormuz, a strained US-Iran ceasefire, and the rupee hitting a record low against the US dollar.
Amidst the stalling of high-level peace talks between Tehran and Washington, Iran continues to endure severe digital isolation as the nationwide internet blackout reached its 44th day on Sunday.
Iran has denied agreeing to participate in a second round of peace talks, contradicting claims made by the United States. The denial comes as tensions remain high in West Asia, with a ceasefire window nearing its end.
Malaysia's Sepang circuit will host the rescheduled 'Gulf Air Bahrain Grand Prix in Malaysia' on October 4, Formula One announced, stepping in after the original April races in Bahrain and Saudi Arabia were cancelled due to the Iran war and Middle East situation.
15 ships carrying essential raw materials successfully navigated the Strait of Hormuz, easing concerns over agricultural input availability.
The United States military has intercepted and destroyed two Iranian attack drones that posed an immediate hazard to commercial shipping lanes in the Strait of Hormuz, according to an official statement by the US Central Command late Saturday.
Trump's phone calls with Netanyahu came after Iran threatened to end the negotiations with the US over Israel's attacks on Lebanon. Netanyahu had said Israel would hit "terror targets" in Beirut if Hezbollah did not stop attacking Israel.
Iran has asserted that maritime movement through the Strait of Hormuz will be strictly controlled by Tehran, stating that passage will be allowed only through designated routes and under Iranian approval.
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.
Indian stock markets are set to be influenced by ongoing developments in the US-Iran conflict, fluctuations in crude oil prices, and the latest quarterly earnings reports from major corporates, with foreign investor activity also playing a crucial role.
'Energy prices would shoot up with the closure of Hormuz again.'
Iran has submitted a fresh proposal to regional intermediaries offering to cease its military operations in the Strait of Hormuz, contingent upon a complete cessation of hostilities and the removal of the US blockade on Iranian maritime hubs.
Non-resident Indians (NRIs) in the Gulf region are increasingly purchasing term life insurance policies from India, driven by geopolitical uncertainties in West Asia and the significant cost advantages offered by Indian products, with the GCC region now contributing over half of the total NRI demand.
US President Donald Trump stated that military strikes against Iran could resume if they 'misbehave,' even as he reviews a new proposal from Tehran aimed at ending the paused conflict.
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.
Head of the Iranian Parliament's National Security Committee Ebrahim Azizi on Saturday said that Iran has prepared a "professional mechanism" to regulate maritime traffic in the Strait of Hormuz through a designated route, which will be unveiled soon.
Iran has lodged a formal complaint with the United Nations, accusing the US of engaging in 'piracy' following the seizure of Iranian vessels. The complaint was detailed in a letter sent by Iran's UN envoy to the UN Secretary-General and the Security Council.
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.
Chinese Foreign Minister Wang Yi has urged Iran to guarantee freedom and safe passage through the Strait of Hormuz, a critical waterway for global oil trade, amid ongoing tensions with the US.
FIFA president Gianni Infantino confirms Iran will participate in the 2026 World Cup despite geopolitical tensions, urging that sport remain separate from politics.
Indian benchmark indices Sensex and Nifty closed lower, snapping a two-day rally, as a spike in crude oil prices, triggered by reports of fresh US military operations in southern Iran, dampened investor sentiment and reignited fears of renewed energy supply disruptions.
US Vice President J D Vance is expected to travel to Islamabad for peace talks with Iran to end the seven-week war, amid a fragile ceasefire and ongoing tensions.
Pakistan has intensified its efforts to bring the US and Iran back to the negotiating table to end the war in West Asia, following President Trump's extension of the ceasefire. Pakistani officials have engaged with Iranian, Turkish, and British counterparts to promote dialogue and diplomacy for a peaceful resolution.
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.
Despite a ceasefire extension, Iran has rejected the United States' conditions for negotiations, creating uncertainty in ongoing diplomatic efforts.
Indian benchmark indices Sensex and Nifty rallied nearly 1 per cent, driven by optimism over easing geopolitical tensions in the Middle East and fresh foreign fund inflows, with the Sensex gaining over 500 points.
Indian markets on Dalal Street rallied sharply as easing tensions in the US-Iran conflict and stable oil prices boosted sentiment. Track Nifty 50 and BSE Sensex performance and key global triggers.
India has successfully evacuated 59 vessels, including 23 Indian-flagged and 36 foreign-flagged ships carrying cargo for India, from the Strait of Hormuz since March 1, 2026, amid fresh attacks and declining shipping traffic, Shipping Minister Sarbananda Sonowal informed the Rajya Sabha.
Chinese President Xi Jinping has called for the Strait of Hormuz to remain open for normal passage of ships, describing it as an 'international waterway' amid rising tensions between the US and Iran.
US President Donald Trump is inclined to reject Iran's latest diplomatic proposal, which suggests restoring maritime traffic through the Strait of Hormuz while deferring nuclear programme concerns, according to CNN. Concerns remain over Iran's nuclear enrichment and internal government fractures.
FPIs have already withdrawn Rs 2.6 trillion from Indian equities in 2026, exceeding the outflows recorded in any previous full calendar year.
China has called on Iran to reopen the Strait of Hormuz and expressed appreciation for Tehran's commitment not to develop nuclear weapons, a key demand of the US to end the conflict.
This sharp Iranian response came after a series of uncompromising remarks from the US president.
Iran's coach and their key player said the national team will strive to bring joy and unity to Iranian people around the world, despite war and other tensions making their FIFA World Cup adventure uniquely challenging.
