Oil is the new Gold:Gives highest return to investors than any other asset during Iran war

The outbreak of the Iran war in early 2026 sent shockwaves through global markets, triggering volatility and uncertainty across various asset classes. Investors scrambled to assess the potential impact on their portfolios, leading to significant shifts in asset performance. Let’s take a look at how key global assets have performed since the conflict began: Indian markets down 7,200 points since Iran war beginning Indian stock markets have experienced a rollercoaster ride. The Sensex and Nifty, the benchmark indices, initially plunged as investors worried about the war’s impact on the Indian economy. In the first 25 days, the Sensex 30 has plunged over 7,200 points (9%) from 81,287.19 on 27 February to 74068.45 points on 24 March. American markets: Resilience amidst uncertainty The US stock markets have shown surprising resilience. The Dow Jones, SP 500, and Nasdaq initially saw a sharp decline, but these have not fallen as much as Asian markets. The benchmark index Dow Jones Industrial Average closed at 48,977.92 points on Friday, 27 February, 2026 – a day before the start of the Iran war. Since then, the index has fallen 5.6%. The tech-heavy Nasdaq has only fallen over 700 points during this 25-day period as the index is laced with companies that benefit from increased demand for technology services during the crisis. Precious metals – a safe haven? Not really! The ongoing war between US-Israel and Iran has surprisingly caused a significant decline in gold and silver prices. According to the India Bullion and Jewellers Association (IBJA), 10 grams of 24 carat gold has decreased by ₹18,677 (11.7%) to ₹1,40,420. Previously, its price was ₹1,59,097 per 10 gm when the war had begun. Meanwhile, the price of one kilogram of silver has decreased by ₹37,900 to reach ₹2,30,000. Earlier, its price was ₹2,67,900 per kilo on 27 February. Due to the America-Iran war, gold has become cheaper by 12% and silver by almost 14%. Brent crude oil: The highest performer Brent crude oil prices have been highly volatile since the start of the war. The initial surge in prices, driven by supply concerns, has been followed by periods of decline as the global economy slows down. Geopolitical tensions and potential disruptions to oil production in the Middle East continue to keep oil markets on edge. Overall, Brent crude has seen a moderate increase since the start of the conflict from around $70 per barrel before the start of the war to $101.4 per barrel as of Tuesday, 24 March, 2026. During this duration, its price has risen by $31 or 44%. US dollar: A flight to safety The US dollar has strengthened against most major currencies as investors seek the safety and stability of the world’s reserve currency. The dollar’s rise has been fueled by increased demand from foreign investors and central banks. One of the reasons for the dramatic fall in commodity prices is shift of investment to US dollar from gold and silver. The US dollar index (DXY) which measures strength of the greenback against a basket of six other currencies has risen 2% in this 25-day period. Indian rupee loses 3% value The Indian rupee has faced downward pressure against the US dollar. The war has led to capital outflows from India as foreign investors seek safer havens. The Reserve Bank of India (RBI) has intervened in the currency markets to stabilize the local unit, but its efforts have had limited success. The rupee’s weakness has made imports more expensive, contributing to inflationary pressures. Consequently, the value of the Indian currency against the greenback has depreciated by 3/$ or 3% to 94/$ from 91/$. India’s 14.2 kg Lpg cylinder prices up ₹60 The price of India’s 14.2 kg LPG cylinder has seen a notable increase. This is primarily due to the rise in global crude oil prices, which directly impacts the cost of LPG production. The government has been subsidising LPG to cushion the impact on consumers, but the rising prices have still strained household budgets. The Centre had hiked domestic cooking gas cylinder prices by ₹60. Eg. in Delhi, 14.2 kg cylinder prices were increased to ₹913 from ₹853. Rates of domestic cylinders are up 7% during the Iran war. While, the price of 19 kg commercial cylinder was increased by approximately ₹114.50 to ₹144.00, depending on the city. If somebody had put their hard-earned money in each of the above assets, then, they would have earned highest return from oil. Indian markets have given negative return. US markets are more or less flat. Gold and silver are also down. It is oil which has given highest return among all other investment avenues.