Gift Nifty crashes 2%, signaling bloodbath at Dalal Street tomorrow
What's the story
The Indian stock market is likely to open significantly lower on Friday, with the Gift Nifty 50 index futures plummeting by 1.7% to 23,580. The sharp decline comes after fresh US strikes on an Iranian military site overnight heightened geopolitical tensions. The development comes despite Washington and Tehran continuing talks aimed at ending their three-month conflict.
Retaliation
Iran claimed to have targeted a US base
In response to the US strikes, Iran's Revolutionary Guards (IRGC) claimed they had targeted a US airbase at around 4:50am local time. However, the exact location of the base was not revealed by the IRGC. Meanwhile, US officials confirmed that Central Command forces shot down four Iranian one-way attack drones near the Strait of Hormuz.
Military action
US military targeted Iranian ground control station
The US military also targeted an Iranian ground control station in Bandar Abbas, which was gearing up to launch a fifth drone. This latest escalation comes just days after the US military carried out "self-defense strikes" in southern Iran against vessels allegedly trying to deploy mines and missile launch sites. The operation was aimed at protecting American troops and commercial shipping routes, according to US Central Command.
Market impact
Oil prices surge amid escalating tensions
Following the recent developments, oil prices have surged over 3%. The global benchmark Brent crude rose over 3% to $97.29 a barrel, while US West Texas Intermediate (WTI) crude jumped by 3.42% to $91.71 a barrel. Citi noted that oil markets are stabilizing as investors slowly move away from pricing in extreme supply disruption risks amid signs of progress in negotiations between Washington and Tehran.