US Iran War Updates: Iran Launches New Missile Strikes at Israel

India’s benchmark indices, the Nifty 50 and the Sensex, slumped on Monday following the escalation of geopolitical tensions in West Asia over the weekend. The Nifty 50 fell 2.06% to 24,659.25, the sharpest intraday drop since February 1. Meanwhile, the BSE Sensex dropped 3.38% to 78,543.73, the steepest fall in nearly a year.

Oil prices surged over 7% to nearly $82.40 per barrel, their highest level in months. Safe-haven asset gold climbed 2%, while the Indian rupee slumped to ₹91.23 per dollar, its lowest level in a month. 

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After the Islamic Revolution in 1979, Iran and Israel's once-strategic alliance broke down, leading to decades of proxy conflicts, clandestine operations and animosity between the two countries entwined with nuclear anxieties.

Following Tehran's nuclear developments, the most recent escalation broke out in February 2026 with coordinated US-Israel strikes on Iranian cities, igniting a new conflict and regional repercussions.

India has called for moderation in order to safeguard its interests and citizens in the face of escalating tensions, given its strong defence ties with Israel and its energy and trade connections with Iran and the Gulf.

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Three American service members were killed and five others seriously wounded during US military operations against Iran, the Pentagon confirmed Sunday — marking the first US combat deaths since the offensive began.

The troops, part of a logistics unit, were attacked as Tehran retaliated for joint US-Israeli strikes targeting Iranian military infrastructure, reported PTI.

Iran “will not negotiate with the United States,” Ali Larijani, Secretary of the Supreme National Security Council of Iran, wrote in a post on X on March 2.

Larijani rejected media reports claiming Iranian officials had sought talks with the Trump administration following a weekend of US-Israeli strikes on Iranian territory, dismissing any such outreach as inaccurate.

The Commerce Ministry will meet exporters and key stakeholders on March 2, to assess the potential impact of the prevailing regional situation on India, reported CNBC-TV18.

The discussions will focus on evaluating possible trade and supply chain disruptions amid escalating tensions. Officials from the Ministry of Shipping and other government departments are also expected to participate in the discussions.

Rising tensions in the Middle East shook markets the morning of March 2, causing shares of airlines and travel-related businesses to plummet, reported PTI.

SpiceJet fell 7.27% and InterGlobe Aviation fell 7.50% on the BSE. Thomas Cook lost 5.40%, TBO TEK lost 8.19%, Easy Trip Planners lost 9.39%, and Yatra Online fell 11.14%. Due to widespread airspace closures that interfered with flight operations, the BSE Sensex fell more than 1,000 points and the NSE Nifty also saw a significant decline.

Shares of Tejas Networks, Paras Defence and Space, ideaForge Technology, Bharat Electronics (BEL) and Hindustan Aeronautics (HAL) jumped up to 15% on March 2 as escalating tensions in West Asia triggered investor interest in defence counters, reported Mint.

Analysts told Mint that geopolitical conflicts typically boost defence spending and accelerate procurement. While experts flagged potential supply chain risks for firms dependent on Israel, select stocks such as BEL and MTAR Technologies showed relative strength. Defence names may outperform during prolonged tensions, though short-term volatility cannot be ruled out.

Shares of oil marketing companies (OMCs) tumbled on March 2 as surging crude oil prices amid the escalating Middle East war weighed on the Indian stock market, reported Mint.

Indian Oil Corporation fell over 5%, HPCL dropped 5.31% and BPCL declined 6.09%, while Reliance Industries slipped more than 3%. In contrast, upstream oil producers gained, with ONGC rising 4.73% and OIL India advancing 4.43%.

The Strait of Hormuz is a narrow but strategically vital waterway linking the Persian Gulf to global markets, with nearly a fifth of the world’s oil supply passing through it daily.

As tensions escalate in West Asia, concerns over potential disruptions at this key chokepoint have unsettled global energy markets. For India, heavily reliant on crude imports routed through the strait, any blockade or military escalation could mean higher oil prices, supply shocks and inflationary pressure.

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Mahindra & Mahindra reported robust sales in February 2026, driven by a strong performance in its SUV line-up, with domestic SUV sales rising 19% to 60,018 units compared with the year-ago period, reported ET.

Total automobile sales for the month reached 97,177 vehicles, marking an 18% year-on-year increase as demand remained strong across its utility vehicle portfolio. This growth underscores sustained consumer interest in SUVs amid broader market gains, while commercial and export segments also contributed.

India's oil supplies and expanded trade connections are being impacted by Iran's widening power vacuum. Concerns about the stability of crude exports have grown as political unpredictability in Tehran worsens, which could raise oil prices globally and cause supply chains that mainly depend on Iranian barrels to malfunction.

Long-term energy contracts and trade corridors are also at risk, which is why policymakers and industry observers are re-evaluating risk exposure. The developments put additional strain on energy security and economic planning for India, one of the biggest oil importers in the world.

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TVS Motor Company reported a 31% year-on-year rise in total sales at 5,29,308 units in February 2026, compared with 4,03,976 units a year earlier, reported Business Standard.

Two-wheeler sales climbed 30%, led by 32% growth in domestic volumes. Motorcycle sales rose 25% and scooters gained 34%. EV sales surged 60% to 38,386 units, underscoring strong electric mobility momentum. Three-wheeler sales jumped 77%, while total exports grew 27% during the month.

Amidst heightened geopolitical tensions in West Asia, India's volatility index (VIX), a crucial indicator of market anxiety, rose by almost 20% to 16.37 on March 2 — its highest level since June 2025, according to Business Standard.

The increase is a result of growing investor apprehension due to increased conflict and worries about oil price shocks, which also had an impact on benchmark indices. Sharp increases in the price of crude oil and defensive purchases of safe-haven assets coincided with the VIX jump, highlighting the rising unpredictability in the equity markets.

IT stocks fell sharply on March 2, with the Nifty IT index dropping over 2% to 29,889 — close to its 52-week low — as the US-Iran war and AI disruption fears weighed on sentiment, reported Mint.

Industry titans like TCS, Infosys, HCL Technologies and Wipro saw a decline between 1.5% and 3%. Coforge fell almost 5% to reach a one-year low, and Persistent Systems fell 6%, becoming the worst performer. Amid worries about slowing demand and pressures from automation, the sector's decline builds on losses from the previous month.

Crude oil prices surged on March 2, jumped ₹504 to a lifetime high of ₹6,596 per barrel in futures trade amid escalating tensions in the Middle East, reported PTI.

On the Multi Commodity Exchange (MCX), crude oil for April delivery rose 8.27% to ₹6,596 per barrel in 10,530 lots. Analysts said heightened geopolitical risks have kept prices elevated in the futures market, with traders factoring in potential supply disruptions and sustained volatility.

Shares of food delivery major Swiggy continued to slide, hitting an all-time low as the stock has now fallen roughly 26% so far in calendar year 2026, reported Business Standard.

The sustained sell-off reflects investor concerns over profitability pressures, rising costs and competitive intensity in the food-tech space. Weak quarterly results, slower growth in core delivery metrics and extended cash burn have weighed on sentiment.

Market downturn driven by escalating geopolitical tensions has pushed roughly 3 out of 5 Nifty 500 stocks below their 200-day moving averages (200-DMA), signalling extended weakness, reported Business Standard.

Data shows about 333 Nifty 500 stocks were trading under this key technical support, often viewed as a long-term trend line. Despite the bearish setup, analysts suggest opportunities for long-term investors to accumulate quality names at lower levels, provided fundamentals remain intact. Technical oversold conditions may offer value for positional buying amid market volatility.

According to Business Standard, rising crude prices weakened investor sentiment on March 2, causing equity markets to veer closer to the day's low. By 1 PM, US WTI crude increased by almost 8.5% to $72.7 per barrel, while Brent crude futures increased by 9% to about $79.4 per barrel.

Growing geopolitical tensions caused a dramatic increase in oil prices, which sparked worries about corporate margins, trade deficits, and inflation. According to analysts, sustained crude strength could affect sectors that depend on oil imports and are rate-sensitive, as well as keep markets volatile.

Stock exchanges in the United Arab Emirates will remain closed on March 2 and 3 as regional tensions escalate, reported Mint citing Gulf News.

The suspension applies to both the Abu Dhabi Securities Exchange and the Dubai Financial Market. The Capital Market Authority said trading was halted in line with its regulatory mandate and applicable laws. Authorities will continue monitoring developments and may take further steps if needed. The regulator also urged investors and stakeholders to follow official communication channels for timely updates.

Airline stocks across Asia-Pacific sank on March 2 as the US-Iran war delivered a double blow to the aviation sector, reported Reuters.

Hong Kong’s Cathay Pacific, Malaysia’s AirAsia X, Singapore Airlines and Australia’s Qantas Airways fell as much as 12% in intraday trade, with AirAsia X emerging as the worst performer. Qantas dropped 10.4% to a 10-month low before trimming losses, even though it does not operate Middle East routes directly and instead codeshares with Emirates. Rising oil prices and airspace disruptions weighed heavily on sentiment.

Major Indian IT companies including Tata Consultancy Services, Infosys, Wipro, HCLTech and LTM have issued internal advisories urging employees in Gulf countries to stay indoors and avoid non-essential travel as geopolitical tensions escalate in the Middle East.

The guidance follows recent missile strikes over cities like Dubai and Abu Dhabi, prompting concerns over safety and flight disruptions across the region. Firms are closely monitoring the situation and maintaining communication with staff on the ground, prioritising employee well-being amid the evolving crisis.

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Suzlon Energy shares extended losses on March 2, falling 8.3% to slip below the ₹40 mark for the first time since May 2024, hitting an intraday low of ₹39.13, reported Mint.

The stock, heavily held by retail investors, has been under pressure since June 2025, turning a sharp correction into a prolonged downturn. Despite in-line December quarter results, analysts flagged execution challenges, including land acquisition hurdles, right-of-way (RoW) issues and grid connectivity constraints, which are slowing project commissioning.

US stock index futures fell more than 1% on Monday as intensifying conflict in the Middle East spurred a flight to safe-haven assets ahead of key US economic data, reported Reuters.

Oil prices surged, gold climbed about 2%, and bond prices rallied, briefly pushing the 10-year Treasury yield to an 11-month low. Fresh US and Israeli strikes on Iran followed weekend attacks that reportedly killed Supreme Leader Ayatollah Ali Khamenei, prompting Tehran to launch missile barrages across the region and heightening fears of a wider war.

Brent crude has climbed to a seven-month high of around $80 per barrel as geopolitical tensions fuel supply concerns.

Citing JM Financial’s scenario analysis, Mint reported that limited retaliation could add $5–10 per barrel, while direct damage to Iranian oil infrastructure may lift prices by $10–12. A disruption in the Strait of Hormuz could push crude above $90 and a broader regional war may send prices beyond $100. For India, every $1 rise in crude increases the annual import bill by about $2bn.

Shares of major Indian airlines, and online travel firms like Ixigo and Easy Trip Planners declined significantly on Monday as escalation in the West Asia conflict has led to airspace closures across the Gulf and disruption at Dubai and Abu Dhabi hubs.

Dubai International Airport operations have been suspended, affecting a key global transit hub. Indian carriers, including IndiGo, Air India, Spicejet and others have cancelled or rerouted flights amid safety restrictions. Hundreds of flights across India-Gulf corridors are cancelled or delayed. Gulf hubs (Dubai, Doha, Abu Dhabi) are critical east-west transit nodes, their shutdown causes cascading global disruption.

Following this, shares of IndiGo crashed as much as 7.5% to their day's low of ₹4,461 on the BSE on Monday. SpiceJet slipped over 3% to ₹14.91 per share. Travel booking firm Ixigo also witnessed a decline in its shares. The stock crashed 13.5% to ₹147, while Easy Trip Planners tanked as much as 9% to their day's low of ₹7.8 per share.

European indices opened sharply lower amid global risk-off sentiment, with Germany’s DAX down 2.2%, France’s CAC 40 falling 1.9% and the UK’s FTSE 100 slipping 1%, reported Mint.

Asian markets were largely weak, though Shanghai bucked the trend, rising 0.5% on gains in oil majors such as CNOOC and PetroChina after crude prices surged. Hong Kong’s Hang Seng dropped 2.1%, while Japan’s Nikkei trimmed early losses to close 1.4% lower, aided by strength in defence-linked stocks.

Pakistan’s benchmark KSE-30 Index tumbled as much as 9.6% at the open on March 2, triggering a 45-minute trading halt as Middle East tensions escalated following US and Israeli strikes on Iran, reported Mint citing Reuters.

The index shed nearly 5,000 points to hit an intraday low of 46,351.64, marking the worst fall on record for the country’s stock market. Rising friction with Afghanistan added to investor anxiety, compounding pressure on equities amid broader regional instability.

Escalating tensions in West Asia threaten to put up to $244 billion of India’s exports at risk.

Disruptions to trade routes, airspace closures and increased shipping costs could derail supply chains and dampen demand from key markets in the Gulf region. Sectors such as pharmaceuticals, textiles, engineering goods and chemicals, which are heavily linked to West Asian markets, could face order delays and revenue pressure if hostilities persist.

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VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said that panic selling during crises is generally not advisable. He underscored that historical trends from events like the Covid pandemic, the Russia-Ukraine war and the Gaza conflict show that market disruptions usually have limited impact over a six-month horizon.

While the ongoing West Asian crisis may bring uncertainties, investors are encouraged to remain cautious and gradually accumulate high-quality stocks in sectors such as banking, automobiles, capital goods and defence to position themselves for long-term growth.

Escalating conflict in West Asia is set to test India’s economic fundamentals as a looming oil shock threatens growth and inflation. With crude prices surging, India’s hefty dependence on oil imports could widen the trade deficit, push up inflation and squeeze fiscal space.

Higher energy costs may also weigh on consumer demand and corporate margins, complicating the broader recovery. Analysts say the government and policymakers will need to monitor the situation closely, as prolonged volatility could have ripple effects across the economy.

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The Israeli Air Force and Navy have been actively intercepting unmanned aerial vehicles (UAVs) since the launch of Operation 'Roar of the Lion', reported PTI citing official updates.

The Air Force successfully intercepted drones approaching from the south, north, and from Iranian territory before they crossed into Israel, while the Navy neutralised another UAV before it entered Israeli airspace. Citizens have been urged to follow instructions from the Home Front Command and adhere to all safety directives. The ongoing operations reflect heightened alertness amid escalating regional tensions.

Former Indian Ambassador to Iran, Gaddam Dharmendra, told ANI that despite the assassination of Supreme Leader Khamenei and key aides during the early strikes on Saturday, the Iranian political system has responded swiftly and remains resilient.

He noted that succession plans were already in place, with a three-member panel overseeing the process of selecting a new Supreme Leader. On the military front, Dharmendra said Iran appeared prepared for both diplomatic talks and potential conflict, unlike last year, signaling that the regime remains unified and is managing the crisis without panic.

The Embassy of India in Oman stated in a post on X that it is in constant contact with Omani authorities conducting search operations for missing crew members from MV Skylight.

The mission is also coordinating the repatriation of rescued crew members and will continue to provide all possible assistance in the matter, ensuring the safety and welfare of Indian nationals involved.

The Israel Defense Forces (IDF) carried out precise strikes on senior Hezbollah operatives in Beirut, multiple Hezbollah and Iranian command centers, and a weapons storage site in Tyre.

The action followed rockets fired from Lebanon into Israel, prompting the IDF to respond firmly. "The IDF is prepared for a multiple-front scenario and to combat any threat posed to Israel and Israeli civilians," the IDF wrote in a post on X.

The Iran Embassy in Austria criticised the so-called E3—Britain, France and Germany in a post on X, labelling their statement urging Iran to halt its self-defence actions as “reckless” and a sign of irrelevance.

The embassy emphasised that, irrespective of external labels, Iran will continue to safeguard its sovereignty and territorial integrity. It added that “respect — not bullying — is the only way to earn Iran’s attention,” underscoring Tehran’s stance of firm self-defence amid escalating regional tensions.

The US military said on March 2 that Kuwait “mistakenly shot down” three American F-15E Strike Eagle jets during combat operations as Iran launched attacks on the country, reported PTI citing AP.

Central Command noted that the engagement involved Iranian aircraft, ballistic missiles, and drones, marking the first time Iran’s ageing combat fleet has been directly used in the conflict.

Ukrainian President Volodymyr Zelenskyy warned that a prolonged war in the Middle East could affect the supply of US arms to Ukraine, reported CNBC TV18.

Speaking to reporters on March 2, he said, “If there are prolonged hostilities in the Middle East, it will certainly affect supplies. I am sure of that.” The statement highlights concerns over the impact of escalating Middle East tensions on global military logistics and ongoing support for Ukraine amid its conflict with Russia.

According to reports, people in Lebanon are leaving their homes as fears of escalating conflict grow following Hezbollah’s retaliatory attacks on Israel on March 2. The strikes come amid rising regional tensions, prompting concerns over civilian safety and the potential for broader military confrontations.

Residents are reportedly moving to safer areas while authorities monitor the situation closely, as the risk of further hostilities threatens stability in the border regions and heightens anxiety among local communities.

AFP, citing Iranian state media, reported that Iran has launched fresh missile strikes at Israel in the latest escalation of the ongoing West Asia war, marking a significant intensification of hostilities.

The strikes reportedly follow major attacks by US and Israeli forces earlier in the conflict, which have triggered a cycle of retaliation across the region, including missile and drone barrages.

QatarEnergy has stopped liquefied natural gas (LNG) production following attacks on its facilities in Ras Laffan Industrial City and Mesaieed Industrial City, reported CNBC TV18 citing the state-run firm.

The halt comes after Iran targeted two of Qatar’s main gas processing bases, impacting both LNG and associated product output. The company confirmed that operations have ceased while assessing the situation and ensuring safety, highlighting the broader disruptions to energy infrastructure in the region amid escalating military tensions in West Asia.

The US Central Command has confirmed that four service members have been killed in action during ongoing military operations against Iran and their identities will be disclosed within 24 hours after next of kin have been notified, according to CNBC TV18.

The force said major combat operations continue as part of its response effort and noted the situation remains fluid. Central Command added that combat actions are ongoing as US and allied forces engage in the broader conflict in the region.