Futures for the GIFT Nifty were trading at 23,257 at 08:11 a.m. IST, indicating that the Nifty 50 would open above Friday’s close of 23,151.10 after posting its steepest weekly drop in years and entering a technical correction.

Supply route developments lift sentimentMarket sentiment improved after the Wall Street Journal reported that the United States was preparing to announce a coalition of countries to escort commercial vessels through the Strait of Hormuz, a maritime corridor that handles about one-fifth of global oil supply.

Additional support came after two India-flagged liquefied petroleum gas carriers Shivalik and Nanda Devi transporting roughly 92,712 metric tons of LPG successfully crossed the strait last week en route to India, easing immediate concerns about fuel supply disruptions.

India’s foreign minister Subrahmanyam Jaishankar said in an interview with the Financial Times published Sunday that he had been in discussions with Iran and that dialogue had produced some results.

However, investors remain cautious as the conflict in the Middle East continues to threaten energy flows and financial markets.

Oil and currency pressures persist as rude oil prices have stayed above $100 per barrel during the conflict, raising concerns about inflation and economic growth in India

.The surge in energy costs has also pushed the Indian Rupee to record lows against the U.S. dollar, highlighting the vulnerability of the country’s energy-dependent economy.

Traffic through the Strait of Hormuz has been heavily curtailed since the United States and Israel launched a bombing campaign on Iran at the end of February, prompting Tehran to largely halt commercial shipping through the critical waterway.

In a social media post, Trump said U.S. forces had “totally obliterated every MILITARY target” on the island while deliberately leaving oil export infrastructure intact. Kharg Island, located about 16 miles (26 km) off Iran’s coast, handles roughly 90% of Iran’s oil exports.

The president said the decision not to strike oil facilities could be reconsidered if Iran or other actors interfere with the “Free and Safe Passage of Ships” through the Strait of Hormuz, a critical maritime route through which roughly a fifth of global oil supply moves.

Iran has been attacking vessels in the waterway during the conflict, halting most commercial shipping traffic and intensifying volatility in energy markets.

Kharg Island lies roughly 300 miles (483 km) northwest of the Strait of Hormuz and serves as Iran’s principal crude export terminal. Satellite imagery reviewed by tanker monitoring service TankerTrackers.com showed multiple very large crude carriers loading at the island earlier this week.

Despite escalating military tensions in the Gulf, Iran has continued shipping crude from Kharg. Between Feb. 28, when the conflict began, and Wednesday, exports ranged between 1.1 million and 1.5 million barrels per day.

Other Gulf producers have temporarily halted shipments because of security concerns linked to Iranian attacks on shipping routes.

Speaking to reporters on Friday, Trump declined to provide a timeline for the conflict’s conclusion.

“I can’t tell you that,” the president said. “I mean, I have my own idea, but what good does it do? It’ll be as long as it’s necessary.

”Oil markets have fluctuated sharply in recent days as investors reacted to shifting signals from Washington about the duration and scope of the conflict.

The United States is sending additional military forces to the Middle East as tensions with Iran escalate around the Strait of Hormuz.

Trump also said Iran had “no ability to defend against U.S. attacks,” urging Iranian forces to lay down their arms.

The confrontation has raised concerns among energy analysts and governments about the risk of a prolonged disruption to global oil supply, with the International Energy Agency previously warning that the conflict could trigger one of the largest supply shocks in modern energy markets.

President Donald Trump issued the warning after global financial markets swung sharply on Monday amid signs that Iran’s security establishment was consolidating behind newly appointed Supreme Leader Mojtaba Khamenei, signalling Tehran may be preparing for a prolonged confrontation.

Iran’s Islamic Revolutionary Guard Corps said it would prevent “one litre of oil” from leaving the Middle East if strikes by the United States and Israel persist, according to Iranian state media.

Trump said Washington had already inflicted heavy damage on Iran’s military infrastructure and warned that any attempt by Tehran to halt tanker traffic through the Strait of Hormuz would trigger far stronger U.S. retaliation.

“We will hit them so hard that it will not be possible for them or anybody else helping them to ever recover that section of the world,” Trump said during a news conference on Monday.

In a later post on his Truth Social platform, Trump reiterated that warning, saying the United States would strike Iran “twenty times harder” if the country attempted to block oil shipments through the narrow waterway, which handles roughly one-fifth of global crude supply.

Iran’s Revolutionary Guards responded by saying the end of the conflict would be determined by Tehran, not Washington. A spokesperson quoted by state media said Iran would ensure that no oil exports leave the region if the attacks by the United States and Israel continue.

The comments came as large crowds gathered in Iran in support of Mojtaba Khamenei, according to Iranian media, suggesting the country’s leadership is seeking to demonstrate domestic backing following the escalation of hostilities.

Iran’s ambassador to the United Nations said at least 1,332 Iranian civilians have been killed and thousands wounded since the United States and Israel launched air and missile strikes across Iran at the end of February.

Washington and its allies say the strikes are aimed at crippling Iran’s missile capabilities and nuclear programme. Israel has said its objective is to topple Iran’s clerical leadership, while Trump has said the conflict could end only if Tehran accepts a government compliant with U.S. demands.

Financial markets reacted sharply to the escalating rhetoric. Crude oil prices and global stock markets swung between gains and losses as investors weighed the risk that the conflict could disrupt energy flows through the Strait of Hormuz, one of the world’s most critical oil shipping routes.

Retail fuel prices climbed more than 10% during the week as markets reacted to supply disruptions linked to the conflict involving the United States, Israel and Iran. The surge presents a potential political challenge for U.S. President Donald Trump, whose administration has pledged to lower energy costs and expand domestic oil and gas production.Speaking in an interview with Reuters, Trump dismissed concerns about the increase, saying that “if they rise, they rise.”Prices climb to multi-month highsAccording to data from the American Automobile Association, the national average price of regular gasoline reached $3.32 per gallon on Friday, an 11% increase from a week earlier and the highest level since September 2024.Diesel prices rose even more sharply, climbing 15% over the same period to $4.33 per gallon, their highest level since November 2023.

The United States is the world’s largest oil producer and a significant exporter, but it also imports millions of barrels daily due to its status as the world’s largest oil consumer. Analysts say global disruptions can therefore affect domestic fuel prices even when U.S. production remains strong.Midwest and South feel the impactSome of the steepest increases were reported in the Midwest and southern United States. In Georgia, average gasoline prices rose 40.1 cents per gallon in the past week, according to the fuel tracking website GasBuddy.Andrenna McDaniel, a healthcare insurance worker in South Fulton, Georgia, said the rise came quickly. “They jumped up so quickly,” she said, adding that she has reduced driving to essential trips.Others expressed support for the administration’s actions. Richard Soule, a retired firefighter and U.S. Air Force veteran in Marietta, said he believed the increase was acceptable in light of national security concerns as he filled up his pickup truck.Other states including Indiana and West Virginia recorded weekly increases of more than 40 cents per gallon.Supply concerns drive outlookOil markets have reacted strongly to disruptions around the Strait of Hormuz, a critical global shipping corridor for crude exports. On Friday, U.S. oil futures settled at $90.90 per barrel, marking the largest single-day increase since April 2020.Patrick De Haan, an analyst at GasBuddy, said gasoline prices could climb further if crude prices continue rising and supply disruptions persist.Denton Cinquegrana, chief oil analyst at Oil Price Information Service, said global demand for U.S. crude has increased as refineries in Asia and Europe seek alternatives to Middle Eastern supplies, tightening domestic fuel markets.

Diesel markets face additional pressure from strong global demand for freight transportation, power generation and heating during an extended winter, combined with limited refining capacity.Higher diesel costs can ripple through the broader economy because the fuel is widely used in shipping, agriculture and manufacturing, raising the cost of transporting goods ranging from food to household products.