Global Markets Decline Over Worsening Gulf Situation As Ceasefire Extension Fails To Cool Down Tensions

Global equity markets on Friday mostly traded flat after the situation in the Gulf region deteriorated, diminishing hopes of peace talks between the United States and Iran.

Dow Futures and S&P Futures were trading muted, with a marginal loss of 0.11 percent and a gain of 0.1 percent, respectively, according to Bloomberg TV, as of 2:00 ET on April 24.

Dow and S&P 500 on Thursday ended almost 0.36 percent higher and 0.08 percent lower, respectively.

Asian markets on Friday were also trading in a range-bound manner. Japan’s Nikkei was up by almost 0.9 percent, or 550 points, on the back of robust tech earnings.

South Korea’s Kospi gained just 0.01 percent, while Hong Kong’s Hang Seng remained muted with a small gain of 0.2 percent, or 51 points.

On the domestic front, India’s Sensex and Nifty were trading lower.

While Sensex opened 0.2 percent lower, Nifty declined 0.3 percent in opening trade.

The losses were further extended to over 1 percent during the early trading hours.

The muted performance of the markets came after the situation at the war front continued to worsen.

In response to the United States seizing an Iranian-flagged cargo ship on Sunday near the Strait of Hormuz, Iran also captured two commercial vessels.

Iran’s demand to take control over the Strait of Hormuz has stalled the peace talks. The crucial waterway caters to a fifth of the global oil and gas supply.

On Wednesday, only nine commercial vessels could pass through the strait, declining from 15 vessels on Monday.

Before the start of the war in late February, about 130 vessels used to pass through the waterway every day.

According to reports, the world has lost an oil supply of about 500 million barrels of oil in the seven weeks of the West Asian war.