Indian Shares Set To Extend Losses As US-Iran Conflict Escalates

(RTTNews) - Indian shares are seen opening on a sluggish note Friday as investors fret over the stability of global energy flows following Iran's relentless attacks on shipping traffic and energy infrastructure in the Persian Gulf.

Brent crude futures traded above $100 a barrel this morning. The war in the Middle East is creating the biggest oil supply disruption in history, the International Energy Agency said in its latest monthly oil market report, a day after the agency agreed to release a record volume of oil from strategic stockpiles.

The Trump administration has issued its second authorization for buyers to take Russian oil cargoes already at sea and announced it was considering loosening shipping rules in a bid to ease growing pressure on prices.

Goldman Sachs has revised its crude oil forecast for the second time in a week and warned of a 2008-like spike to near $150 a barrel.

Meanwhile, India's consumer price inflation increased more-than-expected in February to the highest level in nearly a year, official data showed.

Consumer price inflation rose to 3.21 percent in February from a revised 2.74 percent in January while economists had expected inflation to rise to 3.1 percent.

This was the highest inflation rate since April 2025 but nonetheless remains within the RBI's tolerance range of 2 to 6.0 percent.

Experts expect the RBI to keep policy rates unchanged at the next monetary policy meeting scheduled for April, considering the conflict and disruptions in West Asia impacting prices of oil and gas and food products.

Benchmark indexes Sensex and Nifty fell around 1 percent each on Thursday as the prospect of a quick end to the war in West Asia thinned and trade tensions resurfaced.

The rupee settled 16 paise lower at 92.17 against the U.S. dollar due to concerns over elevated oil prices and continued foreign fund outflows amid the raging war in West Asia.

Foreign investors net sold shares worth Rs 7,050 crore on Thursday while domestic institutional investors (DIIs) net bought shares to the extent of Rs 7,450 crore, according to provisional exchange data.

Asian markets were mostly lower this morning, even as gains in U.S. equity futures helped limit regional losses to some extent.

Treasuries were steady after falling across the curve in the previous session on mounting inflation expectations. Gold edged higher as the dollar index eased after rising in the previous session.

Overnight, U.S. stocks tumbled to reach their lowest closing level in well over three months after closing little changed for two straight days.

The sell-off came amid skyrocketing oil prices and increasing Treasury yields due to Strait of Hormuz disruptions after reports emerged that three more foreign vessels were struck off the coast of Iraq and the United Arab Emirates.

Ayatollah Mojtaba Khamenei, Iran's new Supreme Leader raised alarm bells with a powerful ultimatum targeting U.S. military installations and said the critical Strait of Hormuz would remain closed.

President Donald Trump said that the U.S. benefits from rising oil prices, but his priority is stopping Iran from having nuclear weapons.

Energy Secretary Chris Wright told CNBC that the U.S. Navy is not ready to begin escorting oil tankers through the Strait of Hormuz, but a decision can be taken by the end of the month.

Economic reports painted a positive picture of the world's largest economy, with the U.S. trade deficit shrinking in January and jobless claims falling last week.

The Dow lost 1.6 percent, the tech-heavy Nasdaq Composite plunged 1.8 percent and the S&P 500 plummeted 1.5 percent.

European stocks ended lower on Thursday amid escalating tensons in the Middle East and the Trump administration's decision to launch a probe into alleged unfair trade practices by 16 economies.

The pan European Stoxx 600 dropped 0.6 percent. The German DAX slid 0.2 percent, France's CAC 40 gave up 0.7 percent and the U.K.'s FTSE 100 dipped half a percent.