Sensex crashes nearly 1,800 points after Trump says Iran ceasefire is over

New Delhi: Benchmark equity indices crashed in Wednesday afternoon trade after US President Donald Trump said the tentative ceasefire with Iran was “over”, reviving fears of a wider conflict in West Asia and another spike in crude oil prices. At around 2:45 pm, the Sensex was trading 1,810.55 points, or 2.32 per cent, lower at 76,370.17. The Nifty fell 551.90 points, or 2.26 per cent, to 23,846.80. The selloff deepened after the US launched a fresh wave of strikes following renewed tensions in the Strait of Hormuz. Trump said the ceasefire was over, though reports said talks may still continue. Brent crude jumped nearly 6 per cent to around USD 78 a barrel after his remarks. All sectoral indices in red All Nifty sectoral indices were trading in the red, reflecting broad-based selling rather than weakness in a few counters. The pressure was also visible in the broader market, with the Nifty Midcap 100 and Nifty Smallcap 100 declining sharply as investors cut exposure to high-beta stocks. Oil-sensitive sectors came under particular pressure. Shares of oil marketing companies, aviation firms and paint makers weakened as higher crude prices raised concerns over margins, inflation and demand. Why crude is hurting sentiment India imports more than 85 per cent of its crude oil requirement, making domestic markets highly vulnerable to any sustained rise in oil prices. A prolonged spike in crude can widen the current account deficit, weaken the rupee, raise inflation risks and reduce room for interest-rate support. That is why any escalation around the Strait of Hormuz, a key global oil shipping route, tends to hit Indian equities quickly. Investors are now tracking whether the US-Iran conflict escalates further or returns to negotiations. Until there is clarity on crude oil supply and Hormuz shipping risks, volatility is likely to remain high.