Trump Sets 48-Hour Ultimatum on Hormuz: Global Markets Braced for Impact; Gold May Dip Below ₹1 Lakh
DUBAI/NEW YORK: Global geopolitical tensions reached a boiling point as US President Donald Trump issued a stern 48-hour ultimatum to Iran, demanding the immediate reopening of the Strait of Hormuz for international maritime traffic. Trump warned that failure to ensure the smooth passage of vessels would result in decisive military strikes on Iran’s critical energy infrastructure.
In a sharp rebuttal, Iran’s Khatam al-Anbiya military headquarters stated they are prepared for a “total confrontation.” Iranian officials warned that any move against their energy plants would trigger retaliatory strikes on US-led energy and desalination centers across the Middle East, a move that could paralyze regional stability.
Market Turmoil and Economic Fallout
The escalating “war of words” has sent shockwaves through the financial world:
- Stock Markets: While Indian indices—Nifty (23,200) and Sensex (74,500)—saw a marginal recovery last Friday, analysts predict a volatile opening this Monday. Foreign Institutional Investors (FIIs) have already pulled out over ₹86,700 crore since the conflict began.
- Currency & Oil: The Indian Rupee plummeted to a record low of 93.71 against the US Dollar. Crude oil remains highly volatile, with Brent crude trading at $112 and Murban at $146, amid fears of a total blockade of the world’s most vital oil chokepoint.
- The Gold Correction: Surprisingly, gold prices have faced a sharp international correction due to the strengthening dollar and inflation fears. In Kerala, where gold currently stands at ₹1,07,040 per pavan, experts suggest that if global rates continue to slide toward $4,250 per ounce, domestic prices could drop below the ₹1,00,000 mark, returning to levels seen in early 2026.
As the 48-hour window closes, investors worldwide remain on high alert, with central banks potentially forced to keep interest rates high to combat the looming threat of energy-driven inflation.
