US–Israel–Iran war: Global markets tumble; Sensex drops 1,500 points, gold surges to record high
PTC Web Desk: Global financial markets came under sharp pressure on March 2 as escalating tensions between the United States, Israel and Iran rattled investor confidence. Indian benchmark indices opened deep in the red, mirroring weakness across major Asian markets.
The BSE Sensex fell more than 1,500 points, or 1.80%, to trade near the 79,800 level. The NSE Nifty also declined around 450 points, down 1.80%, hovering close to 24,700 during intra-day trade.
Market analysts attribute the sell-off to growing geopolitical uncertainty. In situations of war-like tension, investors typically fear a spike in inflation, supply disruptions and pressure on corporate earnings. As a result, equity markets witness heavy selling, while capital shifts toward traditional safe-haven assets such as gold and silver.
Crude oil prices surged sharply amid fears of supply disruptions in the Middle East. Brent crude climbed nearly 10% to $79 per barrel. Experts warn that if the conflict intensifies, prices could rise further toward the $120 per barrel mark.
A sustained rise in crude oil prices could directly impact fuel costs in India. Market estimates suggest petrol prices in Delhi may rise from ₹95 per litre to around Rs 100, while diesel could increase from Rs 88 to approximately Rs 92 per litre if global crude remains elevated.
Energy and automobile stocks were among the worst hit sectors in Monday’s trade due to concerns over rising input costs.
Gold and silver rally
Safe-haven buying pushed precious metals to record levels. According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold rose by Rs 7,000 to Rs 1.66 lakh per 10 gram, compared with Rs 1.59 lakh earlier.
Silver prices also witnessed a sharp rally, climbing Rs 20,000 to reach Rs 2.87 lakh per kg.
Experts say gold prices could climb to Rs 1.90 lakh, while silver may touch ₹3.50 lakh if geopolitical uncertainty persists.
US markets end mixed
Wall Street closed on a mixed note on February 27. The Dow Jones Industrial Average fell 17 points, or 1.05%, to settle at 48,977. The tech-heavy Nasdaq Composite declined 0.92% to 22,668, while the S&P 500 index dropped 30 points, or 0.43%, to close at 6,878.
- With inputs from agencies
