US-Iran Conflict, Crude Prices to Drive Market Volatility this Week

Indian equities are set to remain sensitive to global and domestic developments in the coming week. Global markets will be watching for updates on the US-Iran conflict, which has already led to a sharp rise in international crude prices.

Brent crude gained more than 8% during the previous week, while West Texas Intermediate (WTI) crude advanced over 9%. This surge has added pressure on Indian equities, with the Sensex dropping 749.08 points or 0.96%, and the NSE Nifty declining 277.95 points or 1.14%

The US military said it had carried out strikes on three Iranian crude oil tankers, destroying one of them. The action came after the Islamic Revolutionary Guard Corps targeted two US Navy vessels with ballistic missiles.

Investors will track upcoming US employment data for clues about the Federal Reserve's monetary policy path. A stronger-than-expected labour market could reduce expectations of monetary easing, while signs of weakening employment may strengthen the case for rate cuts.