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On February 28, 2026, tensions between the United States and Iran finally spilled over into open conflict.
The US, along with Israel, carried out a series of airstrikes targeting Iran’s nuclear and military infrastructure. This wasn’t a sudden move, it was the result of months of rising friction. Iran had been pushing ahead with its nuclear program, and the US believed time for negotiations was running out.
But what really made the world sit up wasn’t just the war, it was where it was happening.
The conflict disrupted the Strait of Hormuz, one of the most critical oil routes in the world. A large portion of global oil supply passes through this narrow stretch. The moment it came under threat, markets across the world reacted.
Why does this matter for India?
At first glance, this may look like a distant geopolitical issue. But for India, it hits much closer to home. India depends heavily on imported crude oil. So when global oil prices move, the impact is almost immediate on inflation, currency, and overall economic stability.
And that’s exactly what happened.
- Oil prices surged
- The rupee came under pressure
- Foreign investors started pulling money out
This created a ripple effect across Indian markets, making investors more cautious and increasing volatility.
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What Happened in 1 Month: Stocks, Gold and Bonds
To understand the real impact of the conflict, let’s simplify it.
Assume you invested ₹1,00,000 each in stocks, gold, and bonds on February 28, 2026. Here’s what that investment would look like exactly one month later, on March 28, 2026.
Before jumping into the numbers, a quick note on the benchmarks used:
- Stocks: Represented by the Nifty 50, which tracks the performance of India’s top 50 companies across sectors. It’s a good proxy for the overall equity market.
- Gold: Based on 24K gold prices (10 grams), which reflects retail investment value in India.
- Bonds: Represented by the Nifty 10-Year G-Sec Index, which tracks government securities and is a reliable indicator of bond market movement.
What ₹1,00,000 Became in Just 1 Month
| Asset | From | To | ₹1 lakh on 28 Feb 2026 | Value on 28 Mar 2026 | Approx Return |
| Nifty 50 | 25,180 | 22,820 | ₹1,00,000 | ₹90,630 | -9.4% |
| Gold (24K, 10g) | 1,58,585 | 1,42,142 | ₹1,00,000 | ₹89,640 | -10.4% |
| Nifty 10Y G-Sec Index | 2,628 | 2,594 | ₹1,00,000 | ₹98,710 | -1.3% |
Note: The above figures are approximate and rounded off for simplicity. The calculations are based on index-level movements and prevailing market prices between February 28, 2026, and March 28, 2026. This illustration is for informational purposes only and does not constitute investment advice.
While it is evident that all asset classes experienced a decline, the primary significance lies in the specific magnitude of these shifts and the underlying factors driving each market’s trajectory.
- Stocks took the biggest hit (after gold)
With rising global uncertainty and continuous FII outflows, equity markets saw strong selling pressure. Risk appetite dropped sharply.
- Gold didn’t behave like a typical safe haven
In most crises, gold tends to rise. But here, it was corrected significantly. This suggests global liquidity pressures and profit booking played a role, rather than pure “fear buying”.
- Bonds were relatively stable
Compared to stocks and gold, bonds saw limited downside. But they didn’t rally either, as rising inflation expectations kept yields from falling.
Conclusion
If there’s one clear takeaway from this phase, it’s that the markets don’t always follow the textbook.
In just one month, a global conflict managed to shake all major asset classes in India. Stocks corrected sharply, gold failed to provide consistent safety, and even bonds, usually seen as stable, offered limited protection.
For investors, the lesson is simple but important:
- Don’t rely on assumptions like “gold will always go up in a crisis”
- Diversification still matters, but outcomes can vary in the short term
- And most importantly, short-term market reactions are often unpredictable
Frequently Asked Questions on US-Iran War
1. Why is the US against Iran?
The conflict between the US and Iran has been building for decades. The primary concerns include Iran’s nuclear program, its missile capabilities, and its influence in the Middle East through allied groups. The US and its allies believe Iran’s actions could destabilize the region, which is why tensions have remained high.
2. Can the US withdraw from NATO?
Technically, the US can withdraw from NATO, but it is a complex process that would require political approval and has major global implications. NATO is a key military alliance, and any withdrawal would significantly impact global security dynamics and US strategic influence.
3. Was an F-15 shot down in Iran?
Yes. During the conflict, a U.S. F-15 fighter jet was shot down over Iran. Both crew members ejected safely.
According to U.S. officials, one crew member was rescued shortly after, while the second remained missing for some time. A high-risk rescue operation was later carried out, and U.S. special forces successfully rescued the second crew member as well.
4. Who started the war with Iran in 2026?
The conflict escalated on February 28, 2026, when the United States, along with Israel, carried out airstrikes on Iran’s nuclear and military facilities. This triggered immediate retaliation from Iran, leading to a broader regional conflict.
