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Israel-Iran War: Indian Markets Crash Amid Trump's Ultimatum, Asian Markets in Red
Indian and Asian Markets Plunge
On the 24th day of the Israel-Iran war, global financial markets are experiencing extreme volatility. Indian markets have been particularly hit hard, with the Sensex plummeting by 1500 points and the Nifty by 400 points, reflecting a bearish trend. This market crash comes after US President Donald Trump issued a '48-hour ultimatum' to Iran, and Iran retaliated by threatening to close the Strait of Hormuz to enemy vessels and target power and water facilities in the region, intensifying geopolitical tensions. The ripple effects have severely impacted other Asian markets as well.
War Escalation Fears and Financial Market Reactions
President Trump has warned that if Iran fails to fully open the strait, the US will strike Iran's power facilities. Iran, in turn, has stated it will not only restrict passage through the Strait of Hormuz for enemies but also target power and water supplies in Gulf nations. This escalation has rattled Asian markets, with South Korea's Kospi dropping by 5%, Japan's Nikkei 225 by 4%, Hong Kong's Hang Seng by 3.06%, and Taiwan's Taiex by 2.5% in early trading hours.
Rising Crude Prices and Rupee Depreciation
Crude oil prices remain elevated, posing a significant challenge for the Indian economy. The Indian Rupee has hit record low levels against the US dollar. Additionally, Indian government bond yields have spiked by approximately 6 basis points. The market anticipates further downside movements unless positive developments emerge on the geopolitical front. The Reserve Bank of India (RBI) has attempted market interventions to stabilize the rupee, but their effectiveness appears limited so far.
*Source: YouTube: NDTV (2026-03-23)*
