Geopolitical jitters gripped Asian markets on Tuesday as the U.S. and Israel’s military strikes on Iran entered their fourth day, triggering a broad sell-off in risk assets and spiking crude oil prices amid fears of a widening conflict.

The latest wave of strikes and retaliatory attacks has intensified global uncertainty, pushing investors toward safe-haven assets. Sustained selling across Asian markets suggests that Indian benchmark indices — the Sensex and the Nifty 50 — may mirror the regional weakness when markets reopen on Wednesday. The BSE Sensex and the NSE Nifty are closed today on the eve of Holi.

The bearish trend in the GIFT Nifty is signalling a potential gap-down opening for tomorrow, as it was trading near the 24,734 mark, down approximately 258 points. 

On Monday, the BSE Sensex plunged 1,048.34 points, or 1.29%, to settle at 80,238.85, while the Nifty 50 tumbled 312.95 points, or 1.24%, to close at 24,865.70.

Asian equities extend fall

Asian equity markets extended losses today as a sharp spike in crude oil prices and escalating geopolitical tensions in West Asia rattled investor sentiment across the region.

Oil prices surged after several oil and gas facilities in the Middle East reportedly halted production amid intensifying conflict, fuelling fears of supply disruptions. U.S. crude settled 6% higher at $71.23 a barrel after rising as much as 12% intraday, while Brent crude climbed 6.68% to settle at $77.74 per barrel.

Continuing its losing streak today, Japan’s Nikkei 225 plunged 2.65%, tracking steep losses in energy-sensitive and export-oriented stocks. South Korea’s KOSPI was the worst performer in the region, slumping 5.10% as foreign investors rushed to cut exposure amid heightened volatility.

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 1.5%, extending fall for a second straight session.

Hong Kong’s Hang Seng Index slipped 0.31%, while China’s Shanghai Composite Index edged 0.07% lower, reflecting cautious trade in mainland markets despite relatively muted losses.

Taiwan’s Taiwan Weighted Index dropped 1.91%, weighed down by heavy selling in technology counters. Singapore’s Straits Times Index, however, bucked the broader regional weakness, rising 0.91% in early trade.

Indonesia’s Jakarta Composite Index fell 0.16%, while Thailand’s SET Index ended the previous session flat.

Back home, India’s GIFT Nifty was down 1.09%, signalling a weak start for domestic equities on Wednesday as rising crude prices stoked inflationary concerns for oil-importing economies.

U.S. stocks end tad higher

In overnight trade, Wall Street ended marginally higher, trimming early losses in a choppy session following coordinated U.S. and Israeli strikes on Iran. Markets swung between gains and losses through the day as investors weighed geopolitical risks against resilient corporate momentum.

The recovery was led by energy, technology and defence stocks, which helped offset weakness in other sectors. Investors stepped in to buy the dip with measured optimism, betting that productivity gains driven by artificial intelligence could cushion the impact of rising oil prices and escalating geopolitical tensions.

The Dow Jones Industrial Average slipped 0.15% to close at 48,904.78 points. Meanwhile, the S&P 500 edged up 0.04% to 6,881.62 points, and the Nasdaq Composite advanced 0.36% to settle at 22,748.86 points.

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