US President Donald Trump has announced the imposition of new tariffs targeting countries that maintain trade relations with Iran. Under the decision, countries trading with Iran will face a 25 per cent tariff on their exports to the United States. Trump said the measure takes effect immediately, but declined to disclose further details or clarify its scope. No formal executive order or official notification has yet been issued by the US government regarding the Iran-related tariffs. Several countries, including India, maintain trade ties with Iran. However, early assessments indicate that the move is primarily aimed at countries such as Brazil, Turkey, Russia and China, which continue to engage in substantial trade with Tehran.
The absence of a formal US government order has added to uncertainty over the exact implementation and enforcement of the proposed tariffs. Amid these developments, the United States has also issued strong warnings to Iran as anti-government protests intensify across the country. White House Press Secretary Carolyn Levitt said Washington is not ruling out military action if the situation escalates. While efforts are ongoing to reach a consensus through diplomatic channels, she stated that the US would not hesitate to consider strong military options, including air strikes. Levitt added that the US is unwilling to witness innocent civilians dying on the streets of Tehran. Iran, meanwhile, has adopted a firm stance, asserting that it is prepared for a military confrontation if provoked. Iranian Foreign Minister Abbas Araghchi said that any military action under the pretext of suppressing protests would be met with strong retaliation. At the same time, he indicated that Iran is open to dialogue and consensus-building. Araghchi claimed that Iran is currently better prepared than it was during the recent 12-day conflict with Israel.
Indian markets rebound on trade optimism, Sensex and Nifty close higher
Against this tense global backdrop, the Indian stock market staged a sharp recovery after falling for six consecutive sessions. Markets rebounded strongly in the afternoon, supported by positive signals on India–US trade relations. Investor sentiment improved following comments by Sergio Gore, who said that trade talks between India and the United States are progressing. Market participants are hopeful that continued negotiations will accelerate the conclusion of a broader trade agreement. The Sensex, which had slipped nearly 700 points in early trade, recovered sharply to gain more than 1,000 points from its intraday low, closing at 83,878.17. The Nifty 50 ended the session higher by 106.95 points, settling at 25,790.25. Domestic institutional investors provided strong support, purchasing equities worth Rs 5,839 crore during the session.
Market sentiment remains positive going into the next trading day. Gift Nifty is trading higher, indicating that Indian equities are likely to open with gains. The Indian rupee closed without significant losses in the previous session, aided by a softer US dollar and optimism surrounding the resumption of India–US trade discussions. Currency traders believe that progress on trade negotiations could provide further support to the rupee in the near term.
US equity markets also ended the session on a positive note. Wall Street initially opened lower after reports emerged of a criminal investigation involving Federal Reserve Chairman Jerome Powell. However, markets recovered as investors assessed that the issue was unlikely to have an immediate impact on monetary policy or financial stability. The Nasdaq Composite rose 0.26 per cent, while both the S&P 500 and the Dow Jones Industrial Average closed at record highs. Gains were led by advances in Walmart shares and major technology stocks. Banking stocks had earlier faced pressure following Trump’s decision to grant a one-year exemption on credit card interest rate caps, but broader market sentiment later stabilised.
Asian markets are trading mostly higher today, tracking positive cues from Wall Street and expectations of improved regional growth. Japan’s Nikkei 225, which remained closed in the previous session, surged 3.21 per cent. Hong Kong’s Hang Seng Index is up 1.56 per cent, while China’s Shanghai Composite Index is trading marginally lower. Investors are encouraged by signs that corporate earnings may improve and that economic activity across the Asia-Pacific region could pick up. The broader Asia Pacific Index is higher by 0.9 per cent. European markets have also advanced, though investor caution persists amid concerns over Trump’s actions related to the US Federal Reserve and the broader geopolitical environment. Gold prices, which hit record levels in the previous session, continue to remain elevated. International gold prices touched an all-time high of $4,618.42 per ounce and are currently trading around $4,584. Silver prices are also firm at $84 per ounce. Precious metal prices are expected to rise further in the domestic market, with gold likely to set a new record. Crude oil prices have edged higher in international trade after falling in the previous session. WTI crude is up 0.08 per cent, Brent crude has gained 0.03 per cent, and Murban crude is higher by 0.11 per cent, reflecting cautious optimism amid global economic and geopolitical developments.
