Market mayhem: Trump’s Iran strike warning rattles Dalal Street, Sensex crashes 1,500 pts

The sudden sell-off came after US President Donald Trump signalled a fresh escalation in the Iran conflict, vowing to ramp up military strikes—triggering fears of a wider West Asia crisis.

Global jitters deepened as oil prices spiked sharply. Brent crude June futures surged nearly 5% to $106.15 per barrel, rattling investors already wary of inflationary pressures and geopolitical instability.

Markets, which had rallied just a day earlier on hopes of de-escalation, quickly reversed course as Trump’s latest stance dashed expectations of a near-term easing of tensions.

In a recent interview with the New York Post, Trump had suggested the US campaign had significantly weakened Iran and hinted at a possible pullback within weeks—fueling optimism across global markets. Thursday’s developments, however, told a starkly different story.

Amid the equity bloodbath, the Indian rupee offered a rare silver lining, opening 1.4% stronger at 93.53 against the US dollar, compared to its previous close of 94.83.

With geopolitical uncertainty back at the forefront, investors are now bracing for heightened volatility, as markets react sharply to every twist in the unfolding West Asia crisis.