The Indian stock market remained under pressure on Tuesday, July 14, as investor sentiment was weighed down by escalating tensions in the Middle East, which pushed crude oil prices to a four-week high.

Rising energy prices heightened concerns over inflation and potential risks to India’s macroeconomic outlook, especially after domestic inflation accelerated in June.

Both the Nifty 50 and Sensex ended the session with losses of more than 0.7%, while the broader markets also closed in negative territory.

Sectoral performance remained mixed. Nifty Realty, Nifty PSU Bank, and Nifty Auto were among the biggest losers, each declining more than 1%. On the other hand, Nifty Pharma bucked the weak market trend to gain 1%, while Nifty Metal ended 0.6% higher.

Crude oil prices surged nearly 10% overnight as hostilities between the US and Iran intensified, reviving fears of a full-blown conflict similar to those seen earlier this year. The US continued missile strikes on Iran on Tuesday, while Tehran retaliated with attacks on US allies in the Middle East.

The focus of the conflict has now shifted to the Strait of Hormuz, through which nearly one-fifth of the world’s traded crude oil and liquefied natural gas passes under normal conditions.

US President Donald Trump said on Monday that the United States would impose a 20% fee on all cargo passing through the Strait of Hormuz after declaring America the “guardian” of the strategic waterway. He also announced that the US would reimpose its blockade of Iranian ports.

Meanwhile, the renewed escalation in the conflict has reinforced expectations that interest rates could remain higher for longer, prompting investors to adopt a more risk-off stance.