India’s stock markets plunged sharply after U.S. President Donald Trump declared the Iran peace deal “over,” erasing about eight lakh crore rupees in market value within hours. On Wednesday, the Nifty index fell 2.12% to 23,882.05 points and the BSE Sensex dropped 2.15% to 76,503.60 points, marking their steepest decline in three months. The announcement also rattled global markets, with major indices in Europe, Asia, and the U.S. futures all falling.

The renewed Middle East tensions pushed Brent crude oil prices up 6.3% to nearly $79 per barrel, the highest in two weeks, after reports of U.S. and Iranian strikes on each other’s targets. As the world’s third-largest oil importer, India faces rising import costs and inflationary pressure when oil prices surge. The rupee weakened 0.62% to 95.555 per U.S. dollar.

Analysts said the developments heightened concerns over energy supply and foreign investor sentiment. Heavy selling by foreign investors, especially in financial and IT sectors, contributed to the broad-based decline across all 16 major sectoral indices.