Stocks sank and oil prices jumped on Friday (May 8, 2026) as U.S.-Iran clashes in the Strait of Hormuz jolted hopes for a deal to end the war and reopen the crucial waterway.

Markets across the world have enjoyed a strong run this week on growing optimism that the 10-week conflict — which has sent oil prices soaring — will be concluded soon.

Iran-Israel war LIVE updates

However, the risk-on mood was tempered on Thursday (May 7, 2026) following news that US forces had carried out strikes on Iranian military targets in response to an attack on three American destroyers in the Strait, threatening a month-old ceasefire.

For its part, Iran’s central military command accused the United States of violating the ceasefire by attacking an oil tanker and another ship.

Following the clashes, Donald Trump wrote on his Truth Social platform: “We’ll knock them out a lot harder, and a lot more violently, in the future, if they don’t get their Deal signed, FAST!”

But when asked in Washington if the truce was still on, the U.S. President said: “Yeah it is. They trifled with us today. We blew them away.”

The clash came a day after Trump said an agreement could be near and as Tehran considered a one-page U.S. proposal to end the conflict and reopen the Strait, through which a fifth of world oil and gas usually passes.

Also, the Wall Street Journal said the White House was considering restarting an operation to help commercial ships through the Strait, which Mr. Trump dropped after just a day earlier this week.

“Project Freedom” had caused anger in Iran and led it to carry out attacks on the United Arab Emirates.

Oil prices, which fell around 10 percent over the past three days, rose more than one percent Friday.

And equity markets retreated at the end of a week that saw a strong rally across Asia, helped by a surge in tech firms linked to artificial intelligence.

Seoul was off more than one percent after hitting multiple records this week, while Tokyo, Hong Kong, Sydney, Shanghai, Singapore, Wellington, Taipei, Manila and Jakarta were also down.

The losses followed a retreat on Wall Street, where the S&P 500 and Nasdaq came down from all-time highs, though analysts pointed out that losses were not surprising after the recent run-up.

“Once again, the news flow on the geopolitical front has shown that the path towards a lasting agreement is anything but linear,” said Chris Weston at Pepperstone.

He added that “traders have had to rethink the assumptions on the trajectory of the conflict and the normalisation of vessel flows through Hormuz that had been made over the last couple of sessions”.

Sterling weakened against the dollar as investors kept a check on local elections in the United Kingdom, where the ruling Labour Party is expected to suffer hefty losses that could amplify calls for Prime Minister Keir Starmer to resign or face a leadership challenge.

Meanwhile, Japanese media reported that authorities had spent around $64 billion since last week propping up the yen.

The market interventions reportedly began on April 30 when the currency weakened to near 160 per dollar, the lowest in almost two years.

Since then there have been several spikes in the value of the yen, sparking speculation of further moves by the government. On Friday it was trading close to 157.

Atsushi Mimura, Japan’s top currency official, on Thursday declined to comment, local media reported.

Investors are also awaiting the release of U.S. jobs data due later in the day, hoping for an idea about the impact of the war and rising prices on the economy.

Published – May 08, 2026 08:41 am IST

In the international market, crude prices fell sharply, with Brent oil for the July contract plummeting $11.57, or 10.53%, to $98.30 per barrel.
| Photo Credit: Reuters

Stressing the historical foundations of the transatlantic alliance, Britain’s King Charles III underscored the enduring importance of the U.S.-U.K. relationship, tracing its shared heritage back to the battlefields of World War II.Speaking at a White House state dinner, the King highlighted how both nations have consistently supported each other during their “darkest days,” a cooperation that eventually paved the way for the establishment of NATO in 1949.Recalling the pivotal role played by Washington in the previous century, the King noted, “During World War II, at a most critical time in the darkest days of the 20th century, American leadership helped rebuild a shattered continent, playing a decisive role as a defender of freedom in Europe.”– ANI

Vehicles queue at a fuel station as concerns grow over fuel supply following U.S.-Israel conflict with Iran, in Ratnapura, Sri Lanka. File
| Photo Credit: Reuters

People walk past the Bombay Stock Exchange (BSE) building in Mumbai. File
| Photo Credit: Reuters

Equity market benchmark indices Sensex and Nifty rebounded in early trade on July 26 after staying on the back foot for the past five straight sessions, helped by value buying at lower levels and rally in blue-chips Infosys, Tata Consultancy Services and Reliance Industries.

The 30-share BSE Sensex climbed 235.23 points to 80,275.03 in early trade. The NSE Nifty went up 86.6 points to 24,492.70.

From the Sensex pack, Bharti Airtel, Tata Steel, Infosys, JSW Steel, Bajaj Finance, HCL Technologies, Tata Consultancy Services and Reliance Industries were the biggest gainers. Tech Mahindra, HDFC Bank, Nestle and Maruti were among the laggards.

The unique feature of the bull market in India is its ability to climb all walls of worry. The market dismissed all concerns relating to elections, the Budget and the correction in the mother market U.S. The buy on dips strategy which has played out well in this rally continues to hold good, said V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

After a sharp fall in intra-day trade on July 25, the BSE benchmark managed to recover some of the lost ground to settle 109.08 points or 0.14% lower at 80,039.80. The NSE Nifty dipped 7.40 points or 0.03% to 24,406.10. In five days, the BSE benchmark Sensex tumbled 1,303.66 points or 1.60%, while the Nifty declined 394.75 points or 1.59%.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,605.49 crore on Thursday, according to exchange data.

In Asian markets, Seoul, Tokyo, and Hong Kong were trading higher while Shanghai quoted lower. The U.S. markets ended mostly lower on July 25. Global oil benchmark Brent crude climbed 0.19% to $82.53 a barrel.

“The US economy’s 2.8% growth in Q2 confirms it won’t slip into recession, and we expect the Federal Reserve to start cutting interest rates by September due to easing inflation,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

Image for representational purposes only.
| Photo Credit: REUTERS

The rupee was trading in a narrow range against the U.S. dollar in early trade on May 10, as the support from positive domestic equities was negated by elevated crude oil prices.

Forex traders said the strength of the American currency in the overseas market and significant foreign fund outflows dented investors’ sentiments.

At the interbank foreign exchange market, the local unit opened at 83.48, it touched 83.46 in the initial trade, registering a gain of 2 paise from its previous close.

On May 9, the rupee closed at 83.48 against the American currency.

“The Indian Rupee was again sold-off on May 9 as FPIs outflows continued to trigger demand for the U.S. dollar, while probable RBI selling at 83.50 did not allow a higher up move on the USD/INR pair. On May 10 also the same is expected from the USD/INR pair with RBI continuing its control at 83.50,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 105.30, higher by 0.07%.

Brent crude futures, the global oil benchmark, rose 0.5% to $84.34 per barrel.

On the domestic equity market, the 30-share BSE Sensex was trading 169.82 points, or 0.23% higher at 72,573.99 points. The broader NSE Nifty was up 67.05 points, or 0.31%, to 22,024.55 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on May 9 as they offloaded shares worth ₹6,994.86 crore, according to exchange data.

“FPIs offloaded ₹22,858 crore in six market sessions in May 2024, while DIIs (Domestic Institutional Investors) were buyers to the tune of ₹16,700 crore. Uncertainty in election results and higher U.S. treasury yields were the main causes of this sell-off,” Mr. Bhansali added.

Forex traders said subdued equity market sentiment and strengthening American currency weighed on the domestic unit. Image for representation purposes only. File
| Photo Credit: Reuters

The rupee appreciated 2 paise to 82.89 against the U.S. dollar in early trade on February 26 on the back of foreign funds inflow and retreating crude oil prices in the overseas market.

Forex traders said subdued equity market sentiment and strengthening American currency weighed on the domestic unit.

Also, they said investors adopted cautious approach ahead of inflation and other macroeconomic data to be released in India as well as in the U.S. later this week.

At the interbank foreign exchange, the local currency opened at 82.88 and slipped further to 82.89 against the greenback, registering a gain of 2 paise from the previous close.

On Friday, the rupee settled 6 paise lower at 82.91 against the U.S. dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.06% higher at 103.92.

Brent crude futures, the global oil benchmark, was trading 0.45% lower at $82.25 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 219.37 points or 0.30% lower at 72,923.43 points. The broader NSE Nifty declined 51.10 points or 0.23% to 22,161.60 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they purchased worth ₹1,276.09 crore, according to exchange data.

India’s forex reserves declined $5.24 billion to $617.23 billion for the week ending February 9, according to weekly data released by the Reserve Bank of India (RBI) on Friday.

BSE Sensex fell 231.62 points or 0.35% to settle at 65,397.62. During the day, it plunged 320.63 points or 0.48% to 65,308.61. File

Benchmark stock indices Sensex and Nifty fell for the third day running on Friday due to weak trends in global markets and soaring crude oil prices.

Foreign fund outflows also weighed on investor sentiments amid strengthening U.S. bond yields which are nearing 5% for the first time since 2007.

The 30-share BSE Sensex fell 231.62 points or 0.35% to settle at 65,397.62. During the day, it plunged 320.63 points or 0.48% to 65,308.61.

Falling for a third straight day, the Nifty declined 82.05 points or 0.42% to 19,542.65.

In three sessions to Friday, Sensex dropped 1,030 points while Nifty tanked 268 points due to selling pressure.

Among the Sensex firms, ITC, Tata Steel, Hindustan Unilever, State Bank of India, JSW Steel and Power Grid were the major laggards.

Kotak Mahindra Bank, IndusInd Bank, Tata Consultancy Services and NTPC were the major gainers.

Vinod Nair, Head of Research at Geojit Financial Services said, “The added uncertainty stemming from West Asia tensions and the imperative for continued monetary tightening emphasized by the U.S. Fed Chair created a layer of volatility in the market.

“While heightened oil prices and elevated U.S. bond yields will impact the domestic monetary environment and operational metrics of the companies.”

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong ended in the negative territory. European markets were trading lower. The U.S. markets ended lower on Thursday.

Global oil benchmark Brent crude jumped 1.14% to $93.40 a barrel.

“Rising rates are intuitively not positive for equity markets. With U.S. government bonds giving 5% dollar returns, the ask rate for equities goes up significantly if one were to adjust for risk premium and currency hedging,” Alok Agarwal, Portfolio Manager at Alchemy Capital Management said.

The yield on the 10-year Treasury touched 4.99%, up from 4.91% late Wednesday, before paring its gain to 4.98%. Early Friday, the 10-year Treasury yield was 4.94%.

Brent crude, the international standard, picked up $1.29 to $93.67 per barrel as escalating Hamas-Israel conflict fuelled supply concerns.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,093.47 crore on Thursday, according to exchange data.

The BSE benchmark fell 247.78 points or 0.38% to settle at 65,629.24 on Thursday. The Nifty declined 46.40 points or 0.24 per cent to 19,624.70.

A general view of the Bombay Stock Exchange.
| Photo Credit: Reuters

Equity benchmark indices fell in early trade on Friday due to weak trends in global markets and soaring crude oil prices.

Foreign fund outflows also weighed on investor sentiments.

Falling for the third day running, the 30-share BSE Sensex fell 320.63 points to 65,308.61. The Nifty declined 106 points to 19,518.70.

Among the Sensex firms, Hindustan Unilever traded over 1 per cent lower after the company reported a marginal decline in consolidated net profit to ₹2,657 crore for the second quarter ended September 30 amid subdued rural demand and heightened competitive intensity.

HCL Technologies, ITC, Power Grid, Bajaj Finance, UltraTech Cement and Asian Paints were among the other major laggards.

Nestle, Tata Motors, Kotak Mahindra Bank and IndusInd Bank were among the gainers.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading in the negative territory.

The US markets ended lower on Thursday.

Global oil benchmark Brent crude jumped 0.90 per cent to $93.21 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,093.47 crore on Thursday, according to exchange data.

“The U.S. 10-year yield hovering around 5 per cent continues to be a headwind for equity markets. The volatile situation in West Asia, though being largely ignored by the market now, can pose additional near-term challenges,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The BSE benchmark fell 247.78 points or 0.38 per cent to settle at 65,629.24 on Thursday. The Nifty declined 46.40 points or 0.24 per cent to 19,624.70.

The rupee declined by 8 paise to settle at 82.71 (provisional) against the U.S. currency on August 29 due to a rebound in crude oil prices and greenback in the global markets.
| Photo Credit: Getty Images

The rupee declined by 8 paise to settle at 82.71 (provisional) against the U.S. currency on August 29 due to a rebound in crude oil prices and greenback in the global markets.

Foreign fund outflows from the equity markets also weighed on the rupee sentiment, forex dealers said.

At the interbank foreign exchange, the domestic unit opened higher at 82.58 amid overnight losses in the U.S. dollar against major global rivals.

Volatile equity markets and recovery in crude oil prices during the day hit the rupee sentiment, dragging the unit to a day’s low of 82.73.

The rupee settled lower by 8 paise at 82.71 against the U.S. dollar. On August 29, the rupee edged up by 1 paisa to settle at 82.63.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01% higher at 104.07.

Brent crude futures, the global oil benchmark, rose 0.60% to $84.93 per barrel.

On the domestic equity market front, the BSE Sensex closed higher by 79.22 points at 65,075.82 while the broader Nifty advanced by 36.60 points to close at 19,342.65.

Foreign Institutional Investors (FIIs) were net sellers in capital markets on Monday as they offloaded shares worth ₹1,393.25 crore, according to exchange data.