Stock market today: Why Sensex, Nifty eye Iran deal on Monday as Trump deadline nears

Stock market today: The US President Donald Trump’s 48-hour deadline for Iran to end the war, along with his commentary reflecting frustration over the Strait of Hormuz, has kept investors guessing, especially as he also indicated that a deal with Iran could be possible by Monday.

The US President first took to social media to declare: “Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!!”

In the same post, Trump asked Iran to open the Strait of Hormuz, warning that otherwise Iranians could be “living in hell.” He later reportedly told Fox News that a deal with Iran was possible by Monday and that the country was negotiating.

This comes after a Reuters report quoted a spokesperson of the unified command of Iranian armed forces as saying that two C-130 military transport planes and two Black Hawk helicopters of the US army were destroyed by its forces during the US rescue operation. Business Today could not independently verify the report. 

"The ongoing geopolitical tension in West Asia continues to act as a major overhang, and the latest developments have added fresh uncertainty after Donald Trump signaled possible strikes on key Iranian infrastructure, including power plants and bridges. At the same time, rising risk around the Strait of Hormuz is creating a direct concern for global energy supply, pushing crude oil prices higher and keeping markets on edge," said  Ponmudi R, CEO at Enrich Money.

At 7.25 am IST, Gift Nifty was trading 89.50 points, or 0.40 per cent, lower at 22,615. On the flip side, Asian markets like Japan and Korea were trading 0.9 per cent higher each. With both escalation risks and hopes of Monday's deal in play, developments around Iran remain a key trigger for the BSE Sensex and the NSE Nifty in today’s session.

"Comments from US President Donald Trump indicating potential escalation if key supply routes are not restored have kept risk appetite in check. This continues to keep crude oil and global uncertainty as dominant drivers for markets," said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth. 

Trump on Sunday reportedly said that he believes there is a "good chance" of making a deal with Iran on Monday.

Market expert Sandip Sabharwal in a post on X on Sunday said: "People who sold during the Covid selloff regretted in the next 6 months and some never got the guts to invest higher The same will happen to those panicking now."     

OPEC-plus, meanwhile, on Sunday agreed ‌to raise its oil output quotas by 206,000 barrels per day for May, a modest rise that will largely exist on paper as its key members are unable to raise production due to the US-Israeli war with Iran, Reuters reported.