Mumbai, March 12 -- The pace of initial public offerings (IPOs) could slow in 2026 unless market sentiment stabilizes, warn merchant bankers amid the intensifying US-Israel-Iran war.

"If current market conditions persist, IPO activity is likely to moderate meaningfully compared to 2025," said Gaurav Bhandari, chief executive at financial services provider Monarch Networth Capital Ltd.

Iran's retaliatory strikes on energy infrastructure in West Asia, along with its move to shut the Strait of Hormuz, have disrupted oil supplies and pushed up crude prices-an especially sensitive issue for India, which imports roughly 80% of its fuel.

The turbulence has already weighed on domestic markets. The country's benchmark indices have plunged about...