Indian Shares Set To Rally As Trump Announces Iran Deal

Indian shares are set to open higher Monday after President Trump announced an initial agreement with Iran to end their war and reopen the Strait of Hormuz. The U.S. will lift its naval blockade on Iranian ports. The strait handles roughly one-fifth of global oil shipments, making it a critical chokepoint for energy markets.

The agreement reverses a period of heightened military conflict that had disrupted shipping in the region. Oil prices had climbed sharply as traders priced in the risk of a prolonged closure. For India, which imports about 85% of its crude oil, the reopening removes a major source of uncertainty.

Lower oil prices directly benefit Indian companies with high exposure to crude costs. Airlines, which spend heavily on jet fuel, see their largest input cost fall. Paint manufacturers, which use crude derivatives, face lower raw material expenses. The broader market gains from reduced inflation and a narrower current account deficit.

The deal surprised most market participants. Indian benchmark indices had fallen in recent weeks as the conflict escalated and oil prices rose. The Nifty 50 and Sensex are set to gap up at the open.

The initial agreement includes a ceasefire and the lifting of the blockade. Further negotiations on a comprehensive settlement are planned. The White House confirmed the deal late Sunday.

The resolution also reduces geopolitical risk across the Middle East, which had weighed on global equity markets. For India, the immediate benefit is lower oil and reduced uncertainty.