Indian Shares Seen Higher As Oil Prices Tumble On US-Iran Truce Hopes

(RTTNews) - Indian shares may open on a positive note on Monday after oil and U.S. Treasury yields pulled back on Friday, helping ease inflation and interest-rate concerns.

Bent crude futures slumped nearly 6 percent below $93 a barrel in Asian trade today after the United States and Iran paused strikes against each other for a second day, helping ease concerns over a broader conflict and supply disruptions in the Middle East.

Iran said it made progress in talks with Oman on operational mechanisms to ensure safe passage of ships through the Strait of Hormuz.

Despite the conciliatory messages, U.S. President Donald Trump has shared a series of AI-generated images - suggesting that the military option remains on the table.

Trump also rejected reports of a U.S. munitions shortage and claimed, "we have far more munitions than anyone in the world, and far more than we need."

Yemen's Iran-backed Houthi rebels claimed attacks on Aramco facilities in the Saudi cities on Jizan and Yanbu on Saturday.

Iranian Supreme Leader Mojtaba Khamenei issued a statement pledging his country's ongoing support for the Hezbollah terror group in Lebanon.

India's benchmark indexes Sensex and Nifty fell around 2 percent each last week after Brent crude prices topped $100 a barrel amid rising geopolitical tensions in West Asia.

A weaker rupee on the back of U.S.-tariff-related uncertainties and relentless selling by FIIs also weighed on markets.

Asian markets were mostly higher this morning in cautious trade. The U.S. dollar fell against its major peers, while gold traded up more than 1 percent at $4,103 an ounce. U.S. stocks ended mixed on Friday as oil prices fell sharply and bond yields dipped following reports that Pakistan is exploring a path toward new U.S.-Iran talks over ending the conflict.

In economic news, a new round of tariffs on 60 trading partners over forced labor concerns came into effect, replacing a temporary global duty introduced earlier this year.

A survey showed U.S. business activity expanded at the fastest pace in eight months in July, boosted by the World Cup.

While the the-heavy Nasdaq Composite fell 0.6 percent against a backdrop of AI jitters, the S&P 500 inched up marginally and the Dow gained half a percent.

European stocks closed on a firm note on Friday as investors cheered upbeat earnings news as well as data that showed Euro zone business activity returned to growth in July for the first time in four months.

The pan-European STOXX 600 surged 0.8 percent. While the German DAX rallied 1.4 percent, France's CAC 40 and the U.K.'s FTSE 100 both rose by 0.9 percent.