(RTTNews) - Indian shares are seen opening lower on Friday as investors weigh escalating U.S.-Iran tensions and brace for the release of the April U.S. jobs report later in the day for directional cues.
The Middle East situation remains uncertain after Iran created a new agency to formalize its control over the Strait of Hormuz.
The U.S. military said it "remained positioned and ready to protect American forces" after intercepting unprovoked Iranian attacks on three Navy ships.
While insisting talks were "going very well," President Donald Trump said great damage was done to the Iranian attackers and there will be harsher military action "if they don't get their deal signed, FAST!"
Meanwhile, Iranian state media said the country's armed forces exchanged fire with "the enemy" on Qeshm Island in the strait.
Iran's top joint military command said the U.S. targeted an Iranian oil tanker and another ship entering the strait.
Benchmark indexes Sensex and Nifty ended slightly lower on Thursday after posting strong gains in the previous session following reports that the U.S. and Iran are close to reaching a deal to end their conflict.
The rupee appreciated by 36 paise to close at 94 24 against the dollar, driven by a significant retreat in crude oil prices in international markets.
Foreign investors net sold shares worth Rs 341 crore on Thursday, while domestic institutional investors net bought shares to the extent of Rs 441 crore, according to provisional exchange data.
?Asian markets were deep in the red this morning, the dollar strengthened, bond yields edged higher and Brent crude futures climbed toward $102 a barrel as fresh clashes between the U.S. and Iran revived concerns about energy supplies.
The International Energy Agency has warned that the war was disrupting roughly 14 million barrels per day of global oil supply, noting that any post-conflict production recovery would likely proceed gradually.
Gold ticked higher and was on track for a weekly gain after a U.S. trade court ruled that President Trump's temporary 10 percent global tariffs were unlawful.
Overnight, U.S. stocks fell from record highs as investors waited for more tangible results from U.S.-Iran negotiations to end the war and reopen the Strait of Hormuz.
The Dow dipped 0.6 percent, the S&P 500 gave up 0.4 percent and the tech-heavy Nasdaq Composite slipped 0.1 percent after CNN reported that Iran is attempting to force shippers to comply with a new protocol for transiting the Strait of Hormuz.
In economic news, new employment claims saw a small increase last week but remained relatively low.
European stocks closed lower on Thursday after a report said Iran would not allow the U.S. to reopen the Strait of Hormuz with an "unrealistic plan."
The pan-European STOXX 600 fell 1.1 percent. The German DAX dropped 1 percent, France's CAC 40 shed 1.2 percent and the U.K.'s FTSE 100 tumbled 1.6 percent.
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