Crude Oil Spike From Israel-Iran Clash Puts India Markets At Risk: SEBI RAs

Analysts highlight the risk of inflation and trade deficits, urging investors to remain cautious until geopolitical clarity emerges.

A sharp overnight spike in crude oil prices has added to the cautionary tone among SEBI-registered analysts, who say Indian equities may face continued pressure as geopolitical tensions between Iran and Israel escalate.

Front Wave Research noted that oil prices have surged about 8%, reinforcing its previously neutral stance on major indices. 

“As we flagged yesterday—Crude and Gold were hinting at risk. Today, it’s clear why,” the firm said.

It highlighted that risk assets will likely come under pressure amid a risk-off global environment.

Meanwhile, Rajneesh Sharma said Brent crude’s spike of 4–5%, which briefly took prices above $75 a barrel, could negatively affect equities through inflation and trade deficit concerns. 

“One key channel of risk: rising crude prices,” he wrote.

Sectors likely to feel the strain include oil marketing companies, airlines, paints, chemicals, and logistics, according to Sharma. 

However, he also noted that if geopolitical tensions ease, oil could stabilize—offering relief to markets.

The commentary comes as Indian benchmark indices trade lower on Friday amid foreign institutional selling, volatility, and cautious global cues.

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