Indian Shares Poised For Gap-down Open

(RTTNews) - Indian shares may witness a sharp sell-off on Monday as investors brace for a potentially prolonged standoff in the Middle East and a global energy crisis.

With the Strait of Hormuz effectively shut and Iranian strikes spreading across the Gulf, oil prices surged above $100 a barrel for the first time since 2022.

WTI crude futures soared over 25 percent above $113 a barrel in Asian trade and Brent traded up nearly 23 percent near $114 a barrel, both reaching their highest since early 2022 as producers began curbing output.

Goldman Sachs warned in a recent investor note that international oil prices could reach $150 a barrel by the end of the month if crude oil flows through the Strait of Hormuz do not improve.

Iran fired its first missiles towards Israel today following the appointment of Ayatollah Mojtaba Khamenei as the Islamic Republic's new supreme leader.

On Sunday, Iran pressed attacks on neighboring Gulf states, with Qatar, Kuwait, and Bahrain all reporting missile and drone strikes.

The U.S. reportedly ordered diplomats and embassy staff to leave Saudi Arabia after drone attacks hit U.S. embassies in Riyadh.

According to U.S. President Donald Trump, attacks on Iran would continue "until they surrender or, more likely, completely collapse."

Asian markets were deep in the red this morning, with benchmark indexes in Australia, South Korea and Japan plummeting 4-8 percent.

The dollar index gained on safe-haven demand as investors factor in heightened inflation risk and prolonged energy disruption.

Gold traded down nearly 2 percent at $5,082 an ounce due to the stronger dollar.

U.S. stocks fell sharply on Friday, adding to the losses posted in the previous session as U.S. crude oil prices spiked 12 percent to more than &90 a barrel, stirring inflation and interest-rate concerns.

Investors also reacted to signs of a weakening U.S. jobs market, with the economy unexpectedly losing 92,000 jobs in February and the unemployment rate edging up to 4.4 percent from 4.3 percent amid a strike by healthcare workers and harsh winter weather.

The Dow and the tech-heavy Nasdaq Composite fell 1 percent and 1.6 percent, respectively to hit their lowest closing levels in over three months while the S&P 500 gave up 1.3 percent to reach a two-month closing low.

European stocks reversed course to end lower on Friday due to uncertainty around the expanding Middle East conflict and concerns about an energy supply shock exacerbating inflation.

The pan-European Stoxx 600 closed 1 percent lower, with selling seen across the board. The German DAX shed 0.9 percent, France's CAC 40 dipped 0.7 percent and the U.K.'s FTSE 100 lost 1.2 percent.