The US‑Iran standoff intensified after President Trump warned the interim deal was over, driving global risk sentiment lower and sending oil prices sharply up. Asian markets mirrored the trend, with the Nifty falling over 1,600 points as the Indian rupee slid to its weakest level in nearly a month.

The spike in crude pushed India’s benchmark 10‑year bond to a 3‑month low, pushing yields higher and raising inflation expectations. Even as foreign capital continued to flow into equities, the rupee’s weakness and the potential for crude to climb beyond $75 per barrel create headwinds for growth.

Corporate outlooks remain mixed. Technology names like TCS expect modest Q1 earnings, while transformer makers stay confident amid new Chinese competition rules. Investors are keeping a close eye on Fed minutes and any further escalation, as tighter credit could amplify the impact of rising oil costs on corporate borrowing.

The surge in oil prices pressures the rupee and pushes bond yields higher, tightening credit conditions for Indian corporates and making the market more sensitive to any further geopolitical shocks.