Sensex jumps 850 points as oil slumps on hopes of a US-Iran deal

Sensex rose over 840 points and the Nifty 50 climbed past 23,970 on Monday as falling crude prices lifted oil marketing, tyre, and airline stocks..

Oil slumped after Trump said a US-Iran peace deal had been “largely negotiated,” including the reopening of the Strait of Hormuz, a key global energy chokepoint.

Japan’s Nikkei 225 crossed 65,000 for the first time, though US Secretary of State Rubio cautioned that the deal is “still a work in progress.”.

Asian equities were broadly higher on the same oil-led optimism, with Japan’s Nikkei setting a fresh record as investors welcomed hopes of lower energy costs and easier inflation pressure. Reuters-linked reports also show Indian shares were already rising when crude softened, which helps explain the rally in crude-sensitive sectors such as oil marketing, autos, tyres, and airlines.

The bigger market logic is straightforward: if a US-Iran peace deal reduces Middle East risk, crude can stay lower, and that tends to improve margins and sentiment in import-heavy economies like India. In the latest Reuters coverage, Brent had already fallen sharply on peace-deal hopes, though some of that move was later partially reversed as negotiations remained uncertain.

For India, the near-term winners are usually the same groups the market was already rewarding: oil marketing companies, transport names, and other fuel-cost-sensitive stocks. The risk is that any setback in talks could quickly push crude back up and take some steam out of the rally.