Indian shares set to open lower as Iran ship attacks send oil soaring

Indian shares will likely open lower on Thursday, extending the previous session’s losses, as oil prices jumped on reports of fresh attacks on ships in the ​Strait of Hormuz and Iraqi waters, stoking inflation risks and ‌tempering rate-cut bets.

GIFT Nifty futures were trading at 23,784.50 as of 07:58 a.m. IST, indicating the Nifty 50 will open below Wednesday’s close of 23,866.85.

Oil climbed ​as much as 8.2% after Iraqi security officials said Iranian explosive-laden ​boats had struck two fuel-oil tankers, amid wider supply disruptions from ⁠the US-Israeli war on Iran, adding that oil ports “have completely stopped ​operations.”

Even the International Energy Agency’s plan to release 400 million barrels from its ​reserves - the largest move in its history - and the US pledge to contribute 172 million barrels from next week as part of the effort failed to calm ​markets.

Brent futures rose $6.5, or 7:13%, to $98.5 a barrel at 0200 GMT, and ​U.S. West Texas Intermediate (WTI) crude was up $6.1, or 7.1%, to $93.43.

The Middle East conflict has ‌kept ⁠investors on edge as they assess its impact on inflation and the prospect of sustained pressure on global oil supplies.

Asian shares fell, tracking an overnight drop in US and European markets.

Back home, the Nifty and Sensex posted sharp declines on ​Wednesday, and have lost ​about 5% ⁠each since the start of the war.

Foreign institutional investors sold Indian shares worth 59.65 billion rupees ($646.7 million) on Wednesday, while ​domestic investors bought 46.14 billion rupees, per provisional NSE ​data.