US, Iran Discuss 45-Day Truce as Haifa, UAE Hit in Fresh Attacks

Diplomatic push intensifies to end 38-day war as Tehran rejects Trump’s ‘Tuesday night’ deadline; over 10 sites targeted in northern Israel

As the US-Israel versus Iran war entered its 38th day, American and Iranian officials, along with regional mediators, are locked in urgent discussions over a potential 45-day ceasefire that could pave the way for a permanent end to hostilities, according to sources familiar with the talks[reference:0].

Mediators Race Against Time

The last-ditch diplomatic effort comes as US President Donald Trump extended his deadline for Tehran to reopen the Strait of Hormuz by 20 hours, setting a new Tuesday night 8pm ET deadline. 

“There is a good chance, but if they don’t make a deal, I am blowing up everything over there,” Trump told Axios, threatening to destroy Iranian power plants and bridges. 

The negotiations are being conducted through Pakistani, Egyptian and Turkish mediators, as well as via text messages between Trump’s envoy Steve Witkoff and Iran’s Foreign Minister Abbas Araghchi. 

Fresh Missile Barrage Hits Haifa

Even as talks progressed, Iran launched a fresh wave of missile attacks on northern Israel, striking more than 10 sites in Haifa. 

According to Israeli authorities, an Iranian ballistic missile hit a residential building in the port city, leaving at least two people dead and two others missing. Emergency teams continue search operations under rubble. 

“We are focusing all efforts on the four family members who are supposed to be here, using all means at our disposal,” Israel Police Commissioner Danny Levy told reporters at the scene. 

Four others were hospitalised with smoke inhalation, including two five-year-old girls, Magen David Adom confirmed. 

Drone Attack Targets UAE Telecom Facility

In a significant escalation, an Iranian drone struck a building belonging to telecommunications company Du in Fujairah, on the UAE’s eastern coast, on Monday. 

The state-run WAM news agency reported no injuries, but authorities confirmed the drone originated from Iran. 

Separately, falling debris from an intercepted projectile in Abu Dhabi left a Ghanaian national moderately injured, officials said. 

Tehran Rejects Ultimatum

Iranian officials have firmly rejected Trump’s deadline, warning they will not negotiate under pressure. 

Foreign Ministry spokesperson Ismail Baghaei said the Iranian military is fully prepared for any potential attack, adding that in a retaliatory response, “all bases belonging to the US or those assisting it in any way would be targeted.” 

Former Iranian foreign minister Javad Zarif condemned Trump’s “vulgar outburst” and warned that attacking civilian infrastructure would constitute war crimes under the Rome Statute. 

Global Energy Crisis Deepens

The near-closure of the Strait of Hormuz – through which roughly one-fifth of global oil shipments pass – has triggered soaring energy prices and fuel shortages worldwide. 

Brent crude topped $110 a barrel on Monday, while US benchmark West Texas Intermediate rose nearly two percent to $113.62. 

India-flagged vessel Green Asha successfully transited the strait on Monday, marking the ninth Indian ship to navigate the corridor since the war began on 28 February. Air India has suspended flights on the New Delhi-Tel Aviv route till 31 May.

What Next

Diplomatic sources say the chances of reaching a partial deal in the next 48 hours remain slim. 

Mediators are pushing for a two-phased agreement: an initial 45-day ceasefire during which a permanent end to the war would be negotiated, with the possibility of extension. However, Tehran has made clear it does not want a temporary truce like Gaza or Lebanon, where hostilities can resume at will. 

As Trump’s deadline ticks closer, the region braces for either a breakthrough – or a dramatic and destructive escalation.

The Indian stock markets witnessed a sharp sell-off on Monday, March 23, 2026, as geopolitical tensions escalated following US President Donald Trump's 48-hour ultimatum to Iran over the Strait of Hormuz. The BSE Sensex plunged over 1,800 points to close around 72,757, while the NSE Nifty shed more than 550 points to settle near 22,824, marking one of the steepest single-day declines in recent months.

Sensex Crashes 1,800 Points

Dalal Street opened in deep red amid heavy selling pressure across sectors. The benchmark indices erased gains from Friday's session and extended losses through the day, wiping out significant investor wealth.

Trump's Ultimatum Triggers Panic

The primary trigger was President Trump's stern warning issued late Saturday, demanding Iran fully reopen the Strait of Hormuz within 48 hours or face US strikes on its power plants. Tehran responded defiantly, vowing to target regional energy infrastructure if attacked. The ultimatum heightened fears of further disruption in the key oil shipping route, already strained by the ongoing US-Israel war with Iran now in its fourth week.

Crude Oil Surges Above $112

Brent crude climbed over 1% to trade above $112 per barrel, reflecting supply concerns. The Indian basket price hovered near elevated levels, adding pressure on import-dependent India. Rising energy costs fuelled inflation worries and impacted oil-sensitive sectors.

Sectoral Losses Widespread

All major NSE sectoral indices ended lower. Metals and PSU banks bore the brunt, while broader selling hit IT, financials, and consumer stocks. Midcap and smallcap indices also faced sharp corrections.

Global Cues Turn Negative

Asian markets mirrored the caution, with Japan's Nikkei down around 3%, Hong Kong's Hang Seng falling over 3%, and China's Shanghai Composite declining nearly 2.3%. South Korea's KOSPI showed mixed movement but overall sentiment remained weak. US markets had closed lower on Friday, with Dow Jones down nearly 1%, Nasdaq off 2%, and S&P 500 slipping 1.5%.

FIIs Continue Outflows

Foreign institutional investors maintained selling momentum, offloading shares worth over ₹5,500 crore on Friday. Cumulative March outflows stood at nearly ₹87,000 crore. Domestic institutions provided some counterbalance with purchases exceeding ₹1 lakh crore this month.

Background of Recent Volatility

Markets had rebounded modestly on Friday, with Sensex up 325 points to 74,532 and Nifty gaining 112 points to 23,114, buoyed by temporary relief in oil prices and bargain hunting. However, the weekend escalation reversed that trend swiftly.

Official and Market Reactions

Analysts pointed to the combination of geopolitical risks, elevated crude, and FII exits as key drivers. Market participants remained on edge as the 48-hour deadline approached, with potential for further volatility depending on developments in the Middle East.

Impact on Economy and Investors

The sharp decline raised concerns over rupee stability, corporate earnings, and broader economic growth. Higher oil prices could widen the current account deficit and stoke inflation. Retail investors faced significant erosion in portfolio values amid the uncertainty.

What Lies Ahead

Traders will closely monitor any response to the ultimatum and military developments. A de-escalation could trigger a rebound, but prolonged tensions risk sustained pressure on equities. Support levels near 22,500 for Nifty and 72,000 for Sensex will be tested in the coming sessions.

Black Monday on Dalal Street underscores how global events, particularly energy supply risks, continue to dictate sentiment in India's equity markets.