Mint Explainer: What does the Iran-US war mean for equity markets and your portfolio?

The Iran-US conflict has sent shockwaves through Indian markets, pushing the rupee to a record low of 92.32 and driving crude oil past $80 per barrel. As the Nifty 50 shed 2.1% in just four days, foreign investors pulled out over ₹11,700 crore, seeking safety in a strengthening dollar.With the Strait of Hormuz blockade threatening energy supplies and squeezing margins for oil and chemical firms, investors are caught between gold's safe-haven appeal and rising macroeconomic headwinds.Mintexplains what this nascent war and the resulting supply shocks mean for your portfolio and the road ahead for Indian equities.Since the Iran-US war began on 28 February, equity markets worldwide have fallen.The Nifty 50 index declined 2.1% between 28 February and 4 March, while the Nikkei fell 5.5%, the Hang Seng 4.5%, and the Kospi 8.9% over the same period.

In the US, the Dow Jones and the S&P 500 have shed 0.39% and 0.12%, respectively.Indian indices have recovered some of their losses today (5 March), with Nifty 50 up around0.5%and the Sensex up around0.45% at 2:30 pm IST.The rupee fell to a record low of 92.32 per US dollar on 4 March. Rising uncertainty has pushed investors toward safer dollar assets, strengthening the global reserve currency and putting pressure on emerging market currencies.Simultaneously, the escalating conflict and the Strait of Hormuz blockade caused crude oil prices to jump to $83.18 on 5 March, up 12% from 27 February.Anindya Banerjee, head of commodity and currency research at Kotak Securities, said, “We expect the RBI to intervene periodically to contain excessive volatility and prevent disorderly depreciation in the rupee.