The Kuwaiti Army reported intercepting hostile missile and drone attacks, while tensions escalate between the US and Iran with reported strikes and confrontations near the Strait of Hormuz.
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 stock markets are set to be influenced by developments in US-Iran negotiations, crude oil prices, and foreign investor activity in the upcoming holiday-shortened week, according to market analysts.
Iranian media reported an exchange of fire between Iranian and US forces near the Strait of Hormuz, amidst a shaky ceasefire between the two countries.
Indian equity benchmark indices Sensex and Nifty experienced a significant tumble in early trade, with the Sensex tanking nearly 700 points, driven by uncertainty surrounding US-Iran negotiations, a fresh spike in crude oil prices, and persistent foreign fund outflows.
The United States and Iran could be set to announce an agreement soon to achieve a complete solution to the hostilities in West Asia, as reported by Saudi state media Al Arabiya on Wednesday, citing sources familiar with the 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.
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.
Pakistan's Interior Minister Mohsin Naqvi visited Tehran for the third time recently to mediate peace amidst rising tensions between the US and Iran. Pakistan is actively leading diplomatic efforts to de-escalate the conflict in West Asia, which has impacted global energy markets and trade.
The Indian rupee depreciated by 28 paise to settle at 93.44 against the US dollar, influenced by ongoing uncertainties surrounding West Asia peace negotiations, volatile crude oil prices, and the Reserve Bank of India's recent adjustments to non-deliverable forward market regulations.
Iran has restored access to a significant portion of its underground missile infrastructure following months of excavation and repair work, highlighting the limits of US bombing strategy.
US President Donald Trump warned Iran of potential escalation despite a recent ceasefire agreement, stating that US forces will remain in the region until a 'real agreement' is reached.
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.
Indian stock markets are poised for volatility this week, driven primarily by the outcomes of five state assembly elections, ongoing high crude oil prices amid West Asia tensions, and the release of Q4 corporate earnings, according to market analysts.
Crude oil prices reached a new record high in futures trade, both domestically and internationally, as escalating military tensions between the US and Iran in West Asia continue to fuel market volatility. Diplomatic efforts concerning the Strait of Hormuz are being closely watched for potential price stabilisation.
The United States and Iran could resume negotiations as early as next week in Islamabad, according to a report by The Wall Street Journal citing people familiar with the matter.
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.
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.
Indian benchmark stock indices, Sensex and Nifty, experienced a significant decline for the third consecutive day, with the Sensex tumbling 1,092 points and Nifty closing below 24,550. This downturn was primarily driven by the India Meteorological Department's forecast of a below-normal southwest monsoon and ongoing geopolitical uncertainties surrounding the US-Iran ceasefire arrangement.
As the negotiations continued, the Iranian government said on social media that "talks between Iran and the US in Islamabad entered the expert-level stage as economic, military, legal, and nuclear committees joined in".
In April alone, they snapped up shares worth Rs 19,664 crore, recording their biggest buy since October 2024.
Pakistan's Interior Minister Mohsin Naqvi has been in Tehran meeting with Iranian officials in an attempt to mediate and resolve the ongoing conflict between the US and Iran. This marks Naqvi's second visit in less than a week as Pakistan seeks to bridge the differences between the two nations and establish long-term stability in the region.
Mexican President Claudia Sheinbaum said on Monday her government agreed to allow the Iranian national football team to stay in Mexico during the World Cup, adding that the United States did not want to host the team.
US Secretary of State Marco Rubio met with Pakistan's Foreign Minister Ishaq Dar amid American demand that countries mediating the peace talks with Iran join the Abraham Accords and establish diplomatic and economic ties with Israel.
The ceasefire is still technically holding, to the extent that no overt hostilities have been reported yet, but the rhetoric has hardened dangerously. The week ahead will also clarify whether the Islamabad failure was a negotiating tactic or whether Washington has genuinely locked itself into a position from which the only exits are climb-down, escalation, or the slow bleed of a new status quo that nobody chose and nobody controls. Prem Panicker continues his must read blog on the Iran War.
An Indian national was killed in an attack on Kuwait International Airport, prompting the Indian Embassy to offer condolences and assistance. The attack, attributed to Iranian strikes, led to the suspension of air traffic and caused casualties and damage.
Ebrahim Azizi, head of Iran's National Security Committee, stated that diplomatic talks with the US are governed by national interest and security, viewing negotiations as an extension of military efforts.
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."
An Indian national has died in Riyadh, Saudi Arabia, under unclear circumstances following recent events. The Indian Embassy is providing assistance to the family and liaising with local authorities.
The Indian rupee saw a significant appreciation against the US dollar following President Trump's suspension of military strikes against Iran and the Reserve Bank of India's decision to maintain its key interest rate. Market sentiment was further buoyed by positive comments from the RBI regarding the health of the banking sector.
Two youths from Rajasthan were killed in drone attacks in Oman amid the ongoing conflict involving the United States, Israel and Iran.
Iran's Foreign Ministry has denied reports of planned talks with the United States during a visit to Islamabad, Pakistan, despite US envoys also visiting the region.
Indian benchmark indices Sensex and Nifty closed higher, with the Sensex climbing 355.90 points, driven by positive state election results and better-than-expected Q4 earnings, despite ongoing geopolitical concerns.
An Iranian delegation, led by Foreign Minister Abbas Araghchi, is expected to arrive in Islamabad for the second round of peace talks with the US, according to Pakistani media reports. This follows a phone call between Deputy Prime Minister Ishaq Dar and Araghchi regarding the US-Iran ceasefire and Pakistan's diplomatic efforts.
Uncertainty surrounds the planned second round of peace talks between the US and Iran in Islamabad, as both sides engage in brinkmanship. Despite Pakistan's security preparations, Iran has yet to confirm its attendance, citing a lack of seriousness from the US in pursuing diplomacy and violations of the ceasefire.
Indian Grandmaster Koneru Humpy has withdrawn from the FIDE Women's Candidates Tournament, citing concerns over her personal safety amidst the West Asia conflict.
Prime Minister Narendra Modi has called for a swift end to the conflicts in West Asia and Ukraine, emphasising the importance of dialogue and diplomacy. He made the remarks after talks with Finnish President Alexander Stubb, where they also agreed to a strategic partnership in digitalisation and sustainability.
Pakistan's Prime Minister Shehbaz Sharif has offered to mediate between the US and Iran to de-escalate the ongoing conflict in West Asia, following a joint US-Israel attack on Iran. Sharif has been in contact with Saudi Arabia, the UAE, and other nations to promote dialogue and diplomacy.
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.
US Vice President JD Vance's visit to Islamabad for peace talks with Iran has been put on hold after Tehran failed to respond to American negotiating positions, according to a New York Times report.
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