Crude oil prices crash nearly 7% as US-Iran tensions ease; Sensex jumps 776 points
PTC Web Desk: Global crude oil prices fell sharply on Monday after the United States and Iran announced a halt to their military attacks, easing fears of further escalation in the region.
During intraday trading, international benchmark Brent crude dropped as much as 7.9% to $89.11 per barrel. US West Texas Intermediate (WTI) crude also declined 6.9% to $83.14 per barrel, according to the latest market data.
The steep fall in oil prices came after Iran indicated that it would not launch another attack in response to the US stopping its military operations. The development raised hopes that the tensions could be addressed through diplomatic channels.
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The easing of geopolitical tensions and sharp decline in crude oil prices also boosted investor sentiment in Indian equity markets.
The benchmark indices ended higher on Monday, snapping a five-session losing streak. Broad-based buying across sectors helped the markets recover as concerns over the impact of the conflict eased. The Sensex gained 776.01 points, or 1.02%, to close at 76,835.78. The Nifty 50 rose 228.50 points, or 0.96%, to finish at 23,995.95.
The market opened on a strong note as investors responded positively to the pause in military action between the US and Iran. The Nifty regained the 23,900 mark during early trading.
Although the benchmark indices remained within a relatively narrow range for most of the session, buying picked up strongly during the final hour. This pushed the Nifty closer to the 24,000 level and helped both indices finish near the day's highs.
Most sectoral indices ended in positive territory on Monday. The Nifty Media index emerged as the top performer, rising 2.4%. The Nifty IT index followed with a gain of 2.3%. The Nifty Realty index climbed 2.2%, while the Auto and Pharma indices advanced 1.6% and 1.5%, respectively.
The sharp recovery in Indian equities came as investors assessed the potential impact of easing geopolitical tensions, falling crude prices and improved global risk sentiment.
- With inputs from agencies
