Oil prices crash over 4% after US president announces end to naval blockade in Strait of Hormuz; rupee gains 53 paise

Indian stock markets witnessed a sharp rally on Monday, 15 June, 2026, after US President Donald Trump claimed that a peace deal with Iran had been finalised. The Sensex surged 1,100 points to touch 76,677.93 level in morning trade, while the Nifty inched closer to the crucial 24,000 mark.

Markets reacted positively to Trump’s announcement that the US naval blockade in the Strait of Hormuz would be lifted immediately. In a social media post, the president wrote, “Ships of the world, start your engines. Let the oil flow.”

Oil plunges 4%

Brent crude, the global benchmark for oil prices, crashed more than 4% to $83.30 per barrel following the development. The sharp drop came on expectations of increased supply as the strategic waterway reopens for unrestricted movement of tankers.

According to traders, the blockade had constrained oil shipments from major Gulf producers for several months, keeping prices elevated. The sudden reversal triggered selling pressure across energy futures.

Rupee gains sharply

The Indian rupee strengthened 53 paise to 93.65 against the US dollar in early trade on Monday, benefiting from the decline in crude prices and renewed foreign interest in domestic equities. A softer dollar overseas also supported the local currency.

Forex dealers said the combination of lower oil import bill and positive sentiment around emerging markets helped the rupee post its single largest single-day gain in nearly two months.

Global markets rejoice

Asian indices mirrored the upbeat mood. Japan’s Nikkei jumped 5.41% or 3,597 points to 69,594, while South Korea’s KOSPI surged 5.30% to 8,516. Hong Kong’s Hang Seng rose a more modest 0.44% to 24,834.

US markets had already closed higher on Friday ahead of the announcement. The Dow Jones added 354 points to 51,202, the S&P 500 rose 0.50% to 7,431, and the Nasdaq gained 0.31% to 25,889.

FII selling persists despite rally

Interestingly, foreign institutional investors (FIIs) continued their selling spree even as markets soared. Data showed overseas investors offloaded ₹1,082 crore on Monday alone, taking their total net selling over the past seven days to ₹9,760 crore.

Domestic institutional investors (DIIs), on the other hand, stepped in to buy ₹5,341 crore on Monday, with their net buying over the last 30 days crossing ₹1 lakh crore. Market participants said this shift underscores the growing role of local funds in stabilising the market during global uncertainty.

Trump removes naval blockade

In his post, the US president claimed that the long-awaited deal with Tehran was now complete. He also announced the immediate removal of the US naval blockade in the Strait of Hormuz, without any fees or conditions.

While details of the agreement remain unclear, sources familiar with the matter said the deal likely includes curbs on Iran’s nuclear programme in exchange for sanctions relief. Official confirmation from Iranian authorities is still awaited.

What next for oil and markets?

Analysts said the sustainability of the market rally will depend on verification of the deal and actual flow of Iranian oil into global markets. Crude prices could face further downside if supplies rise faster than expected.

For India, a net importer of oil, lower crude prices bring relief on inflation and fiscal deficit fronts. However, traders cautioned that volatility may return if geopolitical tensions resurface or if the deal unravels.

Markets will now watch for official statements from both Washington and Tehran over the next few days.