Sensex and Nifty 50 may open on a muted note on Monday as overnight tensions in the Middle East escalate. Asian markets plunged, while US markets closed in the red after the US launched strikes on three nuclear facilities in Iran.

However, on Friday, Indian benchmark indices snapped a three-day losing streak and rose over 1%, driven by short-covering ahead of the monthly derivatives expiry and relief over US President Donald Trump’s decision to delay direct involvement in Israel’s offensive against Iran.

Domestic Market Recap

On Friday, Indian indices closed in the green:

• Sensex soared by 1,046. points (1.29%) to close at 82,408
• Nifty 50 moved up by 319 points (1.29%) to settle at 25,112

Gift Nifty

Gift Nifty was trading near 24,977, around 152 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Wall Street Performance

US equity futures fell during early Asian trading hours following American military strikes in Iran. Dow Jones Industrial Average futures lost 109 points, or 0.3%, while S&P 500 and Nasdaq 100 futures declined by 0.3% and 0.4%, respectively.

Crude Oil Prices

Oil prices jumped on Monday to their highest levels since January as supply concerns intensified after the United States joined Israel in launching strikes on Iran’s nuclear facilities over the weekend.

• Brent crude soared by 2.49% to $78.93/barrel
• US West Texas Intermediate (WTI) crude: 2.56% to $7.73/barrel

Gold Prices

Gold prices are expected to come under close watch following a sharp escalation in the Iran-Israel conflict after former US President Donald Trump confirmed that the United States had joined the war.

Gold prices held steady on Friday, with spot gold lingering at $3,369.63 per ounce, which is its lowest level since 12 June, marking a 1.8% weekly loss. Meanwhile, US gold futures slipped 0.7% to settle at $3,385.50.

Overnight Major Global Events Driving Sentiment

US Joins Israel-Iran War: Global tensions escalated on Sunday as Iran braced for retaliation following a major US strike on its nuclear facilities, which is one of the most significant Western military actions against the Islamic Republic since the 1979 revolution. The assault, executed in coordination with Israel, marked a dramatic intensification of the ongoing conflict.

The US military dropped 30,000-pound bunker-buster bombs on the mountain shielding Iran’s Fordow nuclear site, a deeply fortified facility central to Tehran’s nuclear program. In response, Iran vowed to defend its sovereignty, warning of consequences for what it called “unprovoked aggression.”

Amid growing global concern, US officials urged Iran to avoid further escalation, emphasizing the need for restraint. Meanwhile, anti-war protests erupted across several American cities, with demonstrators calling for an immediate de-escalation and cautioning against deeper US involvement in the Middle East.

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