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Middle East Tensions Send Oil Prices Soaring Past $98
24 Jul
Summary
- Domestic equity benchmarks declined for the fourth consecutive session.
- Brent crude for September 2026 settlement rose to $98.18 a barrel.
- Nifty 50 index fell to 23,896.60 as investor sentiment remained cautious.
Indian equity benchmarks continued their downward trend, marking a fourth consecutive session of decline on Thursday. This downturn was primarily driven by subdued global market sentiment, a significant rise in crude oil prices, and ongoing profit-booking by investors.
Investor caution intensified as geopolitical tensions in the Middle East pushed oil prices to a six-week high, raising concerns about inflation. The Nifty 50 index closed below the crucial 23,900 level, while the S&P BSE Sensex saw a substantial drop. Broader market indices, including the BSE 150 MidCap and BSE 250 SmallCap, also underperformed.
The price of Brent crude for September 2026 settlement surged by 4.37% to $98.18 a barrel. This commodity price hike is linked to new US strikes and Houthi targeting of oil tankers, widening the Middle East conflict. The market also digested mixed corporate earnings reports, with some companies like NTPC Green Energy and Gandhar Oil Refinery showing strong profit growth, while others such as Nippon Life India Asset Management and Dr Reddy's Laboratories reported declines.
Globally, Asian markets saw gains, but European markets traded lower. US equity futures indicated a negative opening, with the Dow Jones futures down 236 points. The escalating Middle East conflict and its impact on oil prices and inflation remain the dominant factors influencing market sentiment worldwide.
