Markets Set to Open Marginally Lower; Anxiety Over US-Iran Ceasefire Persists

Mumbai, May 12: Domestic equity markets are set to open marginally lower on Tuesday as geopolitical anxiety gripped global sentiment after US President Donald Trump declared that the ceasefire with Iran was “on life support,” dashing hopes of a near-term resolution to the conflict that has roiled global energy markets since April. Trump’s blunt assessment came after Tehran’s response to a US peace proposal revealed stark differences on several key demands. Iran also firmly reiterated its sovereignty over the Strait of Hormuz, which handles roughly one-fifth of global oil and liquefied natural gas flows, keeping supply disruption fears firmly on the table.

Gift Nifty futures were trading at 23,676.50 as of 7:55 am on May 12, down 38.50 points or 0.16%, pointing to a subdued start for domestic benchmarks after Monday’s sharp sell-off.

Asian Markets Mixed Picture

Asian markets presented a mixed picture in early trade on Tuesday, with gains in some markets offset by declines elsewhere. Japan’s Nikkei 225 advanced 314.56 points or 0.50% to 62,732.44, while Hong Kong’s Hang Seng edged up 128.84 points or 0.49% to 26,535.68. Malaysia’s FTSE Bursa KLCI also traded higher, adding 3.63 points or 0.21% to 1,751.69. On the losing side, Indonesia’s JSX Composite slipped 63.78 points or 0.92% to 6,905.62, while Pakistan’s KSE 100 shed 609.51 points or 0.36% to 170,506.31.

US Markets Looking Up

US markets closed on a note of cautious optimism on Monday even as geopolitical tensions simmered, with investors drawing some comfort from ongoing diplomatic engagement between Washington and Tehran despite Trump’s pessimistic public posture on the ceasefire. The partial recovery in risk appetite reflected expectations that both sides retain an incentive to avoid a full breakdown in talks, even as the rhetoric hardened.

Oil Prices Surge

Oil prices edged higher in early Asian trade on Tuesday, with Brent crude futures rising 30 cents or 0.29% to $104.51 per barrel and US West Texas Intermediate gaining 31 cents or 0.32% to $98.38, extending Monday’s nearly 2.8% rally. Analysts noted that as long as US-Iran negotiations remain inconclusive and physical flows through the Strait of Hormuz stay restricted, prices are likely to hold above the $100 mark.

Gold Prices Steady

Gold prices were steady on Tuesday, as markets weighed ‌the developments in the Middle East conflict and interest rate expectations ahead of key US inflation data. Spot gold was steady at $4,732.89 per ounce by 0246 GMT. U.S. gold futures for June delivery gained 0.3% to $4,742.40.

Monday Closing

Indian equities closed sharply lower on Monday, with the Sensex tumbling 1,312.91 points or 1.70% to 76,015.28 and the Nifty declining 360.30 points or 1.49% to 23,815.85, as broad-based selling intensified in the final hour despite a brief mid-session recovery. Market breadth remained deeply negative, with 2,779 shares declining against just 1,390 advances, while India VIX surged over 10%, signalling heightened trader anxiety.

Source:

• nseindia.com
• https://www.reuters.com/world/china/trump-rejects-irans-response-us-peace-proposal-unacceptable-2026-05-11/
• https://www.reuters.com/business/energy/oil-prices-rise-fragile-us-iran-talks-sustain-supply-worries-2026-05-12/
• https://www.reuters.com/world/china/gold-rises-with-uschina-talks-mideast-conflict-focus-2026-05-12/