Markets Open Lower as Hormuz Tensions Rise, Oil Surges to USD 113

May 5, 2026

Mumbai: Global stock markets opened lower on Tuesday as renewed geopolitical tensions in the Strait of Hormuz dampened investor sentiment and triggered risk-off trading across major indices.

Oil Prices Spike on Supply Fears

Crude oil prices surged to around USD 113 per barrel as fears of supply disruptions in the key Middle East shipping route intensified. Brent crude remained elevated amid concerns over potential blockades and ongoing military activity in the region.

Middle East Tensions Drive Market Volatility

Fresh escalation in the Strait of Hormuz has heightened uncertainty in global energy markets, with investors closely tracking developments that could impact oil transportation through one of the world’s most critical chokepoints.

Indian and Global Markets Under Pressure

Asian and Indian equity markets also reflected the negative sentiment, opening lower as higher crude prices raised inflation concerns and weighed on risk appetite. Broader indices saw weakness across sectors except energy stocks, which benefited from the oil rally.

Inflation and Policy Concerns Resurface

Analysts warn that sustained high crude prices could add inflationary pressure globally, potentially influencing central bank policy outlooks if energy costs remain elevated.

Outlook Remains Cautious

Market participants remain cautious as developments in the Strait of Hormuz continue to unfold, with volatility expected to persist in both equity and commodity markets in the near term.