US-Iran peace deal: India VIX returns to pre-war level, crashes 50% from 52-week high
India VIX falls: The fall in the index comes amid signals of market volatility receding on the probability of resolving of US-Israel and Iran conflict in the recent past.
- Jun 15, 2026,
- Updated Jun 15, 2026 3:01 PM IST
India VIX, the volatility index of the Indian equity market, has now returned back to the pre war level. The index, which stood at 14 on February 27 a day before the US and Iran war started, stood at 13.56 level in the current session, signaling reduction of volatility due to the peace deal between India and Iran.
On February 28 this year, US-Israel and Iran war started when the US and Israel launched coordinated military strikes across Iran, targeting major government compounds, nuclear facilities, and key military infrastructure.
Meanwhile, as the market gauges the impact of the peace deal, India VIX has crashed at least 50% from the 52-week high of 28.91 reached on March 30 this year.
The fall in the index comes amid signals of market volatility receding on the probability of resolving of US-Israel and Iran conflict in the recent past.
In the current session, the index slipped 7.88% to 13.56 against the previous close of 14.72. The US-Iran peace deal will end their 107-day war and reopen the Strait of Hormuz, the narrow waterway through which around one-fifth of global oil supplies pass.
This led to a stellar rally in markets across the globe. The global markets exuberance spilled into the Indian stock market. Sensex zoomed 1015 pts to 76,542 and Nifty rallied 307 pts to 23,930. In Asia, South Korea's Kospi rallied nearly 6 percent, while Japan's Nikkei 225 index rose over 5 percent. Shanghai's SSE Composite index and Hong Kong's Hang Seng index also traded higher. US markets ended in the green on Friday.
Subsequently, brent crude price, the global oil benchmark, fell 4.55 percent to $83.36 per barrel. For India, the world's third-largest oil importer, lower oil prices are a big positive as they help decrease pressure on inflation, rupee and the country's trade deficit.
The rupee also rose 58 paise to 94.60 against the US dollar after crude oil prices fell sharply.
India VIX, the volatility index of the Indian equity market, has now returned back to the pre war level. The index, which stood at 14 on February 27 a day before the US and Iran war started, stood at 13.56 level in the current session, signaling reduction of volatility due to the peace deal between India and Iran.
On February 28 this year, US-Israel and Iran war started when the US and Israel launched coordinated military strikes across Iran, targeting major government compounds, nuclear facilities, and key military infrastructure.
Meanwhile, as the market gauges the impact of the peace deal, India VIX has crashed at least 50% from the 52-week high of 28.91 reached on March 30 this year.
The fall in the index comes amid signals of market volatility receding on the probability of resolving of US-Israel and Iran conflict in the recent past.
In the current session, the index slipped 7.88% to 13.56 against the previous close of 14.72. The US-Iran peace deal will end their 107-day war and reopen the Strait of Hormuz, the narrow waterway through which around one-fifth of global oil supplies pass.
This led to a stellar rally in markets across the globe. The global markets exuberance spilled into the Indian stock market. Sensex zoomed 1015 pts to 76,542 and Nifty rallied 307 pts to 23,930. In Asia, South Korea's Kospi rallied nearly 6 percent, while Japan's Nikkei 225 index rose over 5 percent. Shanghai's SSE Composite index and Hong Kong's Hang Seng index also traded higher. US markets ended in the green on Friday.
Subsequently, brent crude price, the global oil benchmark, fell 4.55 percent to $83.36 per barrel. For India, the world's third-largest oil importer, lower oil prices are a big positive as they help decrease pressure on inflation, rupee and the country's trade deficit.
The rupee also rose 58 paise to 94.60 against the US dollar after crude oil prices fell sharply.