Energy markets reacted sharply to the de-escalation. Oil prices, which had surged amid fears of supply disruption, reversed course dramatically. Brent crude futures fell nearly 16 per cent to an intraday low of $91.88 per barrel, while US West Texas Intermediate (WTI) crude dropped almost 20 per cent to around $91.05. The sharp correction reflected expectations that oil flows through the Strait of Hormuz — a key global supply route — would normalise.
The ceasefire, announced just hours before a potential escalation in US military action, has rekindled investor confidence after weeks of turmoil that had pushed several market indices into correction territory since the conflict began over a month ago.
However, analysts cautioned that the rally across asset classes may prove fragile. Its sustainability will depend on whether the ceasefire holds and whether energy shipments through the Strait of Hormuz resume without disruption. Concerns remain over possible violations, particularly with continued hostilities involving Israel, which could trigger renewed escalation.
Market participants noted that the rupee’s current levels are favourable for importers, though foreign portfolio investors continue to remain net sellers in Indian equities, limiting the currency’s upside.
In the commodities segment, precious metals moved higher, reflecting mixed signals in global markets. On the Multi Commodity Exchange (MCX), gold futures for June 2026 rose 2 per cent to Rs 1,53,944 per 10 gms, while silver futures for May surged 6 per cent to Rs 2,44,770 per kg, tracking gains in international bullion prices.
As geopolitical tensions momentarily ease, markets appear to be navigating a delicate balance — buoyed by optimism over diplomacy, yet wary of how quickly sentiment could reverse if the fragile truce falters.
With IANS inputs
