Benchmark indices fall 2% amid sustained high crude oil prices

Financial outlets describe a risk‑off mood driven by the Iran war, high oil prices, and uncertainty over the US Federal Reserve. This view holds that energy‑importing countries such as India are under pressure from a weaker currency, higher inflation risks, and falling stock indices. Markets are expected to stay volatile until there is clearer news on the conflict’s impact on oil flows and on the Fed’s rate path.

• •Global investors are cutting exposure to riskier assets as the Iran war threatens oil supplies and keeps crude above $100.
• •Indian stocks are underperforming because higher oil prices worsen the country’s trade deficit and inflation outlook.
• •The record‑low Indian rupee reflects concern that sustained high crude prices will strain India’s external finances.
• •Deutsche Bank’s FX volatility index rising to an eight‑month high shows traders bracing for sharp currency swings.
• •Upcoming US Federal Reserve decisions are seen as crucial for how markets digest the inflation shock from expensive oil.