Indian stock markets opened on a strong note Tuesday after news of a ceasefire deal between Iran and Israel, announced by US President Donald Trump.
By 9:30 am, the Sensex had surged over 750 points to 82,670, while the Nifty jumped 270 points to 25,200. All 13 key sectors saw gains, with mid- and small-cap stocks rising around 0.9% each.
The rally follows a dip on Monday, when both benchmark indices dropped around 0.6% after the US struck Iranian nuclear sites, escalating geopolitical tensions.
Oil Slips to One-Week Low After Ceasefire News
Oil prices fell sharply following the ceasefire announcement, hitting their lowest in a week. Around 9 am, Brent crude futures dropped by $2.08 or 2.9%, trading at $69.40 per barrel. Earlier, prices had plunged over 4%, touching their lowest mark since June 11.
“If the ceasefire is followed as announced, investors might expect the return to normalcy in oil,” Priyanka Sachdeva, a senior market analyst at Phillip Nova, told Reuters.
“Moving forward, the extent to which Israel and Iran adhere to the recently announced ceasefire conditions will play a significant role in determining oil prices,” she added.
Iran is OPEC’s third-largest crude producer, and the easing of tensions would allow it to export more oil and prevent supply disruptions.
Ceasefire Announced Between Israel and Iran
Former U.S. President Donald Trump has declared that Israel and Iran have reached a ceasefire agreement, with Tehran set to halt hostilities immediately and Israel expected to follow 12 hours later.
The announcement comes 12 days after a major escalation between the two rivals, sparking global concern over rising tensions in the Middle East. However, Israel has not officially confirmed the truce. In fact, Israeli forces reported two rounds of missile attacks from Iran early Tuesday.
The conflict erupted on June 13, when Israel launched strikes on Iranian nuclear facilities, accusing Tehran of nearing nuclear weapons capability. The situation intensified on Sunday when U.S. forces joined in, targeting three key nuclear sites in Iran.
While the ceasefire announcement offers a glimmer of hope, the lack of confirmation from Israel leaves the situation uncertain.