Indian benchmark indices are likely to open lower on Tuesday, with GIFT Nifty indicating a gap-down start following renewed escalation in the conflict between the United States and Iran. At around 8:10 am, GIFT Nifty was trading near 24,090, down 128 points or 0.53 percent, signalling that the Nifty 50 could open below Monday's closing level of 24,211.

The weak opening is expected despite a resilient performance in the previous trading session. On Monday, the Sensex gained 47.01 points, or 0.06 percent, to close at 77,616.40, while the Nifty 50 added 4.10 points, or 0.02 percent, to settle at 24,211. Gains in information technology stocks helped offset weakness across FMCG, metal and real estate counters.

Global market sentiment deteriorated after the United States announced fresh measures targeting Iran. US President Donald Trump said the country would reinstate a naval blockade on Iranian shipping and impose a 20 percent transit fee on cargo passing through the Strait of Hormuz. The developments have intensified concerns over potential disruptions to global oil supplies through one of the world's most critical energy trade routes.

Crude oil prices extended their rally following the announcement. Brent crude futures rose about 2.6 percent to around $85.50 per barrel after recording their biggest single-day gain since May 2020 in the previous session. US West Texas Intermediate crude also advanced above $80 per barrel, reflecting growing concerns over supply risks.

Asian equity markets traded with caution as investors assessed the geopolitical developments. While select markets such as South Korea posted gains, overall sentiment remained subdued. US equity futures also edged lower following overnight weakness on Wall Street.

US markets ended sharply lower on Monday, with technology stocks leading the decline. The Nasdaq Composite fell 1.55 percent, the S&P 500 declined 0.79 percent and the Dow Jones Industrial Average slipped 0.26 percent. Energy stocks, however, outperformed as investors anticipated stronger earnings from higher crude oil prices.

Investor sentiment was further impacted after Federal Reserve Governor Christopher Waller indicated that the US central bank could consider additional interest rate hikes if inflation remains significantly above its target.

Foreign institutional investors continued to reduce exposure to Indian equities, selling shares worth more than Rs 3,000 crore on Monday. Domestic institutional investors partially offset the outflows by purchasing equities worth Rs 2,171 crore, extending their buying streak to four consecutive trading sessions.

Market experts believe geopolitical developments and crude oil prices will remain the key drivers of near-term market direction. According to technical analysts, the Nifty continues to maintain a cautiously positive structure, with the 24,300-24,400 range acting as the immediate resistance zone. On the downside, the 24,000 level remains a critical support, with a break below it potentially opening the door for further weakness towards the 23,900-23,800 range.