Indian Shares Set To Open Lower As US-Iran Tension Persist

(RTTNews) - Indian shares are seen opening lower on Monday as investors keep a close eye on the latest developments in the Middle East and oil price movements.

Brent crude prices traded above $110 a barrel as U.S.-Iran tensions escalated and OPEC+ warned that war-related damage to energy infrastructure could have lasting repercussions for oil supply even after the conflict subsides.

The group has decided to increase oil output by 206,000 barrels per day in May to help address a global supply shortfall, although Iran indicated that Iraq would be exempt from restrictions it imposed on ships passing through the Strait of Hormuz.

Meanwhile, U.S. President Donald Trump has renewed his threat to attack Iran's bridges and power plants, warning he would bring "Hell" to Iran if they do not open the vital waterway by 8 p.m. Eastern Time on Tuesday.

Trump said he plans to hold a news conference "with the Military" at the Oval Office at 1 p.m. on Monday after U.S. forces rescued an American airman in Iran last week.

Tehran rejected the latest demand, condemning Trump's remarks as an "incitement to war crimes" and warning to respond "in kind" to any attacks on its infrastructure.

Describing Thump's threats as a sign of desperation and rage, Iran's President's office said the Strait of Hormuz will be reopened only when all war damages are compensated from transit tolls.

Iran continued strikes on economic and infrastructure targets in the neighboring Gulf region, including Kuwait's oil headquarters. Israel carried out several attacks in Beirut's southern suburbs and southern Lebanon.

Asian stocks traded higher this morning, with benchmark indexes in Japan and South Korea rising around 1 percent, while most other markets in the region remain closed for holidays.

While Australia, New Zealand and Hong Kong celebrate Easter, mainland China and Taiwan celebrate Qingming Festival, the tomb-sweeping holiday.

In the United States, all three Wall Street indexes posted strong gains last week on hopes of Iran war de-escalation.

The dollar index was steady in Asian trading while gold prices fell more than 1 percent toward $4,600 an ounce amid fading hopes of Federal Reserve interest-rate cuts after the March U.S. employment data showed a strong rebound from February's weak numbers.

Data showed the U.S. economy added 178,000 jobs in March, well above the consensus estimate of 59,000. The unemployment rate dropped to 4.3 percent from 4.4 percent, driven by a big drop in labor force participation.

Closer home, Indian benchmark indexes Sensex and Nifty ended Thursday's volatile and truncated final trading session of the week on a positive note, extending gains for a second day running.

The 30-share BSE Sensex rose 0.3 percent for the day while the broader NSE Nifty index added 0.2 percent, recovering from intraday lows as the rupee rebounded sharply following decisive intervention by the RBI to curb speculative pressure.

The rupee witnessed its sharpest single-day gain in nearly 13 years on Thursday, closing at 93.10 against the U.S. dollar after the Reserve Bank of India (RBI) introduced steps to curb currency speculation.