Sensex, Nifty open lower as Middle East war pushes Brent crude toward $100

Iranian-backed Houthis in Yemen launched strikes on several Saudi cities, while US forces hit multiple Iranian oil tankers and Iran struck a US base in Jordan.

Indian equity markets opened lower on Wednesday as escalating tensions in the Middle East pushed crude oil prices closer to $100 a barrel and weighed on investor sentiment.

The decline comes after both indices lost 2.2% over the past seven sessions, falling in six of them. (PTI)

The BSE Sensex fell 474.44 points, or 0.63%, to 75,103.14, while the Nifty 50 dropped 140.60 points, or 0.59%, to 23,494.50 in early trade.

The decline comes after both indices lost 2.2% over the past seven sessions, falling in six of them. They closed Tuesday at their lowest levels since June 12.

Brent crude futures jumped 1.5% to $99.5 a barrel after the Middle East conflict intensified. Iranian-backed Houthis in Yemen launched strikes on several Saudi cities, while US forces hit multiple Iranian oil tankers and Iran struck a US base in Jordan.

Higher crude prices are a concern for India, which imports most of its energy needs. Sustained high oil prices could widen the trade deficit, fuel inflation and weigh on economic growth.

Investors are also awaiting US inflation data later this week for clues on the Federal Reserve's interest-rate decision next week. Higher US interest rates could weigh on emerging-market equities by slowing foreign fund flows and making the dollar and US Treasuries more attractive.

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