Stock Market Today: Sensex, Nifty Tumble After Trump Threatens 'Hell' To Iran Over Hormuz Blockade

Stock Market Today: Domestic equity benchmark indices opened with a gap-up, tracking cues from Japan's and South Korea's markets; however, the indices soon pared initial gains to trade in the red as US President Donald Trump’s threat to Iran over the blockade of the Strait of Hormuz weighed on investor sentiment. The Hormuz is a critical shipping route which carries nearly one fifth of the total global oil supply.

The BSE Sensex opened with a gap-up of 157.98 points, or 0.22 per cent, at 73,477.53. Likewise, the NSE Nifty 50, began the session up by 67.20 points, or 0.30 per cent, at 22,780.30.

However, a few minutes into trading, Sensex slipped as much as 529 points, or 0.72 per cent, to hit an intraday low of 72,790.49 so far, and Nifty tumbled up to 151.20 points, or 0.66 per cent, to the day's low at 22,561.90.

Among sectors, oil & gas, pharma, and health care were down between 1 per cent and 1.50 per cent. FMCG, banks, financial services were also trading in the red. On the other hand, IT, metals, realty, auto, and PSU banks were up in the green.

Most broader market indices were in negative territory, except midcap indices. Nifty Next 50, Nifty Midcap 50, and Nifty Midcap 100 were flat-to-positive. Smallcap indices were down significantly, with the Nifty Smallcap 100 quoting lower by around 0.30 per cent.

Trump's Threat To Iran

On April 5, Trump took to his Truth Social account to announce a profanity‑laced ultimatum, warning that he would bomb key Iranian infrastructure, including power plants, if Tehran does not meet his demands. "Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!! Open the Fuckin’ Strait, you crazy bastards, or you’ll be living in Hell - JUST WATCH! Praise be to Allah," he posted.

In another post, he even provided the exact deadline: "Tuesday, 8:00 P.M. Eastern Time!"

Iran's Response To Trump's Threats

Iran warned of "much more devastating" retaliation if the US or Israel strikes civilian targets, according to state media Islamic Republic of Iran Broadcasting (IRIB).

A statement from the Khatam al-Anbiya Central Headquarters, Iran’s top military command, published by IRIB, said "If attacks on civilian targets are repeated, the next stages of our offensive and retaliatory operations will be much more devastating and widespread."

The spar of threats has escalated geopolitical tensions and renewed fears over global energy supply.

Crude Oil Prices Breach $110/bbl

The fresh escalation in the US-Iran war has pushed crude oil prices higher further. As of 10:15 AM, the international benchmark Brent crude oil futures traded higher by 0.70 per cent at $109.78 per barrel, while the US benchmark West Texas Intermediate (WTI) oil futures was down by 0.20 per cent at $111.32 a barrel.

Asian Markets Mixed

Asian indices were mixed in early trade after Trump's threats. Japan's Nikkei 225 was up by 1.25 per cent, South Korea's Kospi up by 1 per cent, while China's CSI 300 was down by 0.80 per cent, and Hong Kong's Hang Seng was lower by 0.70 per cent. Australia's index ASX was also 1 per cent down.