New Delhi, March 2 -- Even before the Street could fully digest artificial intelligence (AI)-led turmoil, equity investors are staring at a fresh overhang: escalating tensions in the Middle East following joint US and Israel strikes on Iran.

How the situation evolves remains uncertain. But the immediate concern is clear-crude oil. Any prolonged disruption in Iran's key water passageway, the Strait of Hormuz, could tighten global supplies and push prices higher.

"For India, the impact is direct: every $1 rise in crude increases the annual import bill by about $2 billion, putting pressure on the trade balance," said JM Financial Institutional Securities.

Higher crude prices carry macro risks. They stoke inflation, inflate the import bill...