Oil prices surge past $105, Sensex tumbles after Trump’s Iran warning

Global oil prices surged sharply on April 2 after Donald Trump signalled an escalation in military action against Iran, raising concerns over supply disruptions and rattling financial markets worldwide.

Brent crude, the international benchmark, climbed above the $105–$108 per barrel range, registering gains of over 4–7% during the session, while US West Texas Intermediate (WTI) also recorded similar increases.

The spike followed Trump’s statement that the United States would continue strikes on Iran and target key infrastructure in the coming weeks.

His warning that Iran would be hit “extremely hard” heightened fears of prolonged conflict and potential disruption to oil flows through the strategically vital Strait of Hormuz.

The sharp rise in crude prices triggered a negative reaction across global and Indian equity markets. In India, the BSE Sensex fell more than 1,400 points in early trade, while the Nifty also declined significantly, with all sectoral indices trading in the red.

Market sentiment weakened as investors grew wary of the economic impact of rising oil prices, particularly for oil-importing countries like India. Higher crude prices are expected to fuel inflation, widen the trade deficit, and increase pressure on the rupee.

Analysts said the lack of clear signals on de-escalation in Trump’s address contributed to market volatility. Concerns remain centred around the Strait of Hormuz, a key global oil transit route, where any disruption could significantly affect global energy supplies.

Global equities also came under pressure, with Asian and US market futures slipping amid heightened geopolitical uncertainty. Investors moved cautiously, anticipating further volatility depending on Iran’s response and any international diplomatic developments.