New Delhi, March 10 -- A spike in crude oil prices due to tensions between the US and Iran, as well as unrest in the Middle East, has put pressure on the Nifty 50 and Sensex recently. The domestic benchmark indices have declined by nearly 7% over the past month. Market analysts suggest that the extreme volatility in crude prices have led to heightened instability in stock markets worldwide.

The sudden spike in crude prices, which drove Brent crude close to $120 yesterday (March 9), saw a significant drop this morning (March), with Brent crude falling to $89. Such a drastic shift of nearly $30 in a single day demonstrates the considerable uncertainty regarding the implications of the conflict in West Asia on global crude supply, according...