Sensex, Nifty Set To Rally As Oil Prices Plunge On Iran-Israel Ceasefire

(RTTNews) - Indian shares look set to open sharply higher on Tuesday after U.S. President Donald Trump claimed on social media that Israel and Iran have agreed to a "complete and total ceasefire" to be phased in over 24 hours.

Brent crude futures extended losses in Asian trading after declining 8 percent overnight in the absence of immediate disruption to global oil supply.

West Texas Intermediate (WTI) crude futures for August were down more than 2 percent this morning, falling below $67 a barrel as Iran's token retaliation against a U.S. base removed the immediate threat to the vital Strait of Hormuz shipping lane.

Benchmark indexes Sensex and Nifty fell around 0.6 percent each on Monday amid escalating geopolitical tensions in West Asia.

The rupee weakened to a five-month low, closing at 86.75 against the dollar, down 26 paise from its previous close.

Asian markets were mostly higher, the dollar weakened while gold traded weak near $3,350 per ounce.

U.S. stocks ended with gains overnight as oil prices slumped and Federal Reserve Vice Chair Michelle Bowman said she favored a rate cut "as soon" as July if inflationary pressures remain contained.

President Trump downplayed Iran's missile strike on the Al Udeid Air Base in Qatar. He said 13 of 14 missiles were intercepted and emphasized there were no casualties.

Trump also thanked Iran for giving Washington advance notice of the attack, adding Iran can now proceed to peace and harmony in the region, and he would enthusiastically encourage Israel to do the same.

The Dow and the tech-heavy Nasdaq Composite both climbed around 0.9 percent, while the S&P 500 rallied 1 percent.

European stocks fell modestly on Monday as investors waited for Iran's response to the weekend U.S. air strikes on its nuclear sites.

The pan-European STOXX 600 closed 0.3 percent lower. The German DAX dipped 0.4 percent, France's CAC 40 shed 0.7 percent and the U.K.'s FTSE 100 slid 0.2 percent.