The Indian stock market witnessed a severe downturn on Tuesday as geopolitical tensions reached a boiling point. The BSE Sensex crashed by 950 points, slipping to the 73,150 mark, while the Nifty-50 dropped 288 points to stand at 22,680. The Bank Nifty also faced a brutal sell-off, declining over 550 points or 1.11%. This sharp correction follows US President Donald Trump’s aggressive stance against Iran, which has sent shockwaves through global financial corridors.

The primary trigger is Trump’s 8 PM deadline for Iran to fully reopen the Strait of Hormuz for trade. The President warned of “total destruction” for Iran if the demand is not met, escalating fears of an imminent military conflict. Consequently, crude oil prices have surged past the psychologically significant $113 per barrel mark. While Asian markets showed mixed trends, US futures traded lower, reflecting widespread anxiety. The increasing probability of a new war has prompted investors to offload risky assets, leading to a massive rout across sectors.