Indian Shares Seen Lower Amid Confusion Over US-Iran Ceasefire Terms

(RTTNews) - Indian shares are seen opening a tad lower on Thursday as oil prices rebounded amid confusion over the U.S.-Iran truce terms.

Uncertainty is growing around the ceasefire as both sides appear to be working with different versions of the peace proposal.

Sporadic fighting continued throughout the Middle East, including in Lebanon, where Israel's military launched what it described as its most powerful attacks on Wednesday, killing hundreds of people and creating panic.

Tehran, which has emerged from the battle with control of the Strait of Hormuz, called U.S. talks 'unreasonable' following Israeli strikes.

Several strikes were reported across the Gulf region, with Saudi Arabia's East-West Pipeline, a critical artery bypassing the Strait of Hormuz, reportedly hit in an Iranian drone attack on Wednesday.

White House Press Secretary Karoline Leavitt accused Iran of saying "one thing publicly" while communicating something very different behind closed doors, raising questions about whether Washington was misled in high-stakes negotiations.

Iran has halted the passage of oil tankers through the Strait of Hormuz after accusing the United States of violating three clauses of the 10-Point Proposal.

Benchmark indexes Sensex and Nifty jumped 4 percent and 3.8 percent, respectively on Wednesday as investors cheered the U.S.-Iran ceasefire announcement and evaluated the Reserve Bank of India's latest monetary policy decision.

The rupee appreciated by 47 paise to close at 92.59 against the U.S. dollar after RBI Governor Sanjay Malhotra indicated that the current curbs on forex markets are temporary and will not remain in place indefinitely.

Foreign investors net sold shares worth Rs 2,812 crore on Wednesday, while domestic institutional investors net bought shares to the extent of Rs 4,168 crore, according to provisional exchange data.

Asian markets were broadly lower in cautious trade this morning as U.S. President Trump's ceasefire push faced scrutiny.

The dollar steadied after earlier declines while gold was little changed at $4,725 an ounce after a two-day gain.

Brent crude prices rose 2 percent toward $97 a barrel after a 13 percent plunge in the previous session.

With oil prices still around 40 percent higher than pre-conflict, investors fear the inflationary fallout will last for long time yet.

Overnight, U.S. stocks rallied to reach their best closing levels in about a month after the U.S., Israel and Iran agreed to a two-week ceasefire, subject to Tehran agreeing to the complete, immediate and safe opening of the Strait of Hormuz.

Trump said the U.S. has received a 10-point proposal from Iran that he believes is a "workable basis on which to negotiate" and that the two-week ceasefire will allow the agreement to be finalized and consummated.

In economic news, minutes from the Federal Reserve's last policy meeting showed a growing number of members felt a rate hike might be needed as inflation rates climb beyond target thresholds.

The Dow spiked 2.9 percent, the tech-heavy Nasdaq Composite surged 2.8 percent and the S&P 500 climbed 2.5 percent.

European stocks surged on Wednesday in a broad relief rally as the U.S.-Iran ceasefire deal sent oil prices crashing, easing inflation fears.

The pan European Stoxx 600 climbed 3.9 percent. The German DAX skyrocketed 5.1 percent, France's CAC 40 soared 4.5 percent and the U.K.'s FTSE 100 added 2.5 percent.