Sensex crashes over 1,000 points as West Asia tensions rattle markets, oil prices surge

The benchmark BSE Sensex crashed over 1,000 points in early trade, while NSE Nifty 50 slipped below the 23,900 mark as oil prices surged during the first hour of trading.

Investor concerns deepened over reports of a possible closure of the Strait of Hormuz for 70 days, a development that could severely disrupt global crude oil supply chains and push fuel prices significantly higher.

Global benchmark Brent Crude climbed 2.69 percent to $104.01 per barrel as geopolitical tensions intensified following the United States’ rejection of Iran’s response to a proposed peace initiative.

Meanwhile, Prime Minister Narendra Modi on Sunday urged Indians to adopt austerity measures in view of the worsening crisis in West Asia, warning that the global conflict could seriously impact India’s economy through higher fuel prices and pressure on foreign exchange reserves.

Addressing a gathering in Hyderabad, Modi appealed to citizens to avoid unnecessary foreign travel for a year and refrain from purchasing gold during festivals and weddings.

Stressing the need for “economic patriotism”, the Prime Minister said every Indian must contribute towards protecting the country’s financial stability during a period of global uncertainty.

He also urged people to reduce petrol and diesel consumption, revive work-from-home practices wherever possible and rely more on public transport.

Modi cautioned that disruptions in global crude oil supply chains due to the conflict could sharply raise India’s import bill, given the country’s heavy dependence on imported fuel and gold.