Global equity markets came under renewed pressure on Tuesday as escalating tensions in West Asia deepened risk aversion across asset classes. US equity futures fell sharply, pointing to a weak opening on Wall Street, while Asian and European indices recorded some of their steepest declines in recent months.

At around 4.30 pm IST, Nasdaq 100 futures were down 2.26 percent, S&P 500 futures fell 1.75 percent, and Dow Jones Industrial Average futures declined 1.68 percent. The selling intensified as the conflict involving Iran entered its fourth day, with no visible signs of de-escalation.

The geopolitical escalation has quickly translated into market concerns around energy supply disruption. An extended conflict involving Iran, a key player in global oil dynamics, is widely seen as keeping crude prices elevated. Higher oil prices, in turn, reinforce upside risks to inflation at a time when central banks particularly the US Federal Reserve are already navigating a fragile policy environment.

US President Donald Trump indicated there was no fixed timeline for developments, while Secretary of State Marco Rubio warned that “the hardest hits are yet to come.” Reports of a drone attack on the US embassy in Riyadh and Israeli troop movements into southern Lebanon added to investor unease, reinforcing fears that the conflict could broaden geographically.

The ripple effects were immediate. European and Asian equity benchmarks headed toward their steepest two-day declines since April. In Asia, South Korean markets witnessed their worst selloff since 2024. The KOSPI plunged 7.2 percent in its worst session since August 2024 after reopening from a holiday. Shares of Samsung Electronics and SK Hynix fell at least 9.9 percent each, underscoring how technology and export-heavy counters are particularly vulnerable during global risk-off episodes.

Japan’s Nikkei 225 dropped more than 3 percent. Hong Kong’s Hang Seng Index and China’s SSE Composite Index each fell over 1 percent. In Europe, the Stoxx Europe 600 was down more than 3 percent, reflecting broad-based selling across sectors.

Indian markets were closed on Tuesday for Holi, but offshore indicators pointed to significant pressure. Gift Nifty futures were trading at 24,360 at around 4.30 pm IST, down 632.5 points or 2.53 percent. The decline signals a sharply negative opening for domestic equities when trading resumes.

The weakness follows Monday’s volatility in Indian markets. The BSE Sensex had fallen as much as 2,743.46 points in early trade before recovering partially to close 1,048.34 points lower at 80,238.85. The Nifty 50 ended 312.95 points lower at 24,865.70 after a deep intraday slide.