Middle East Conflict Shakes Global Markets, BSE Sensex Tumbles Over 10%

The onset of the West Asia war on February 28 has dealt a substantial blow to investors' wealth, diminishing it by an astonishing Rs 48.29 lakh crore. This turmoil has reverberated across the global markets, causing the BSE Sensex to drop by 10.56% as geopolitical tensions mount in the Middle East.

Prompted by military strikes from the US and Israel on Iran, which took the life of Iran's supreme leader Ayatollah Ali Khamenei, a series of retaliatory attacks have targeted Israeli and American military bases in the Gulf. This conflict has nearly closed the strategic Strait of Hormuz, straining global oil and gas flows.

The ongoing volatility has triggered a negative sentiment cycle, exacerbated by elevated energy prices, foreign outflows, and continuous pressure on the rupee. As markets falter, the Sensex saw a significant drop to settle at 72,696.39, while the Nifty concluded at 22,512.65, underlining the profound market instability.