Wall Street wobbles, oil spikes on Iran-Israel clash, India stares down a manic Monday

Wall Street tumbled and oil prices soared Friday after Iran launched hundreds of missiles at Israel in retaliation for airstrikes on its nuclear and military facilities—raising fears of a broader Middle East conflict and sending shockwaves across global markets, including India.

The S&P 500 shed 1.1%, erasing the week’s gains, while West Texas Intermediate crude futures surged 7.5%, their sharpest jump since March 2022. Gold hovered near record highs, U.S. Treasury yields rose, and the VIX fear gauge breached the 20 mark, signaling rising anxiety.

In India, the BSE Sensex and NSE Nifty each dropped about 0.7% on Friday, with the Nifty opening nearly 1% lower. The India VIX jumped between 7% and 10%, reflecting heightened investor unease.

Oil-sensitive sectors led the decline. BPCL, HPCL, and IOC fell over 3% as Brent crude prices spiked more than 10% for the week, threatening higher input costs. Aviation, paint, tyre, and lubricant stocks also slumped. Meanwhile, oil producers ONGC and Oil India gained on the crude rally.

Adani Ports dropped 3% due to its exposure to Israel’s Haifa Port. IT majors like Infosys and TCS, and pharma companies with Israeli operations, posted muted or negative moves as investors reassessed geopolitical risk.

The broader market was under pressure: PSU banks slid 1.2%, autos dropped 1.5%, and mid- and small-cap indices also lost ground. Analysts noted a “flight to safety” as funds flowed into gold and the Swiss franc. Foreign investors were net sellers in Indian equities.

“The lasting damage may be crude oil prices,” said Louis Navellier of Navellier & Associates. “This will certainly do some damage to the inflation statistics if it doesn’t roll back soon.”

Jim Baird of Plante Moran said a prolonged oil surge could become “an additional hurdle” for a slowing global economy.

Indian technical analysts flagged 24,500 as a crucial support level for the Nifty. A breach could signal further losses; a bounce could bring recovery toward 25,100. Despite India’s stable macro indicators, including easing inflation, external tensions are dictating sentiment.