Sensex Crashes 1,000 Points as Oil Spike, Iran Tensions Rattle Markets

Benchmark stock market indices opened sharply lower on Monday, beginning the week on a weak note amid escalating tensions in West Asia after the US and Iran failed to reach peace terms.

The S&P BSE Sensex plunged 1,017.62 points or 1.30% to 76,310.57, while the NSE Nifty50 dropped 249.65 points to 23,876.70 as of 9:48 am.

The selloff was triggered by a fresh spike in crude oil prices, worsening geopolitical tensions and concerns over the impact of rising imports on India's macroeconomic stability.

Oil Prices Surge as Iran-US Talks Fail

Crude oil prices jumped sharply after hopes of an immediate resolution to the nearly 10-week-long US-Iran conflict faded.

Brent crude rose 2.69% to trade above $104 per barrel, while US WTI crude climbed 2.54% to around $97.84 per barrel.

The latest rally came after US President Donald Trump rejected Iran's response to Washington's peace proposal, calling it "unacceptable", reigniting fears over prolonged disruption in the Strait of Hormuz.

The strategically crucial shipping route has remained largely blocked for over 70 days, intensifying concerns over global energy supply disruptions.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said markets are facing pressure from two major headwinds — the fading possibility of a quick resolution to the West Asia conflict and concerns arising from India's widening current account deficit due to elevated crude prices.

PM Modi's Austerity Call Adds to Concerns

Investor sentiment was also impacted after Prime Minister Narendra Modi urged citizens to reduce consumption of petrol and diesel, avoid unnecessary foreign travel and cut non-essential imports such as gold.

The remarks, made during an event in Hyderabad, were viewed as a crisis-management response to rising import bills amid elevated crude oil prices and ongoing disruptions in energy supplies.

Vijayakumar said the austerity appeal could have a slightly negative implication for India’s economic growth in FY27 and may weigh sentimentally on sectors linked to fuel consumption, aviation, hospitality and discretionary spending.

Selling pressure remained broad-based across sectors in early trade.

Titan Company emerged as the biggest loser among Sensex stocks, falling 6.37%. InterGlobe Aviation declined 2.81%, while State Bank of India dropped 2.78%. Eternal and Bharti Airtel also traded sharply lower.

HCL Technologies and NTPC were the only gainers among Sensex constituents in early trade.