The Indian stock market slipped deeper into the red on Wednesday, with the Sensex and Nifty falling over 2% each as rising crude oil prices, weak global cues and renewed geopolitical tensions weighed on investor sentiment.The selloff intensified in the second half of trade after US President Donald Trump said that an interim agreement with Iran to end the war was “over”, raising concerns over escalating Middle East tensions.The Sensex plunged 1,601 points to 76,580, while the Nifty50 declined 472 points, slipping below the cruciual 24,000 mark as of 2:18 pm IST.The market decline wiped out nearly Rs 4 lakh crore in investor wealth, dragging the combined market capitalisation of all BSE-listed companies below Rs 476 lakh crore.All Sensex constituents traded in the red, with shares of Hindustan Unilever, InterGlobe Aviation, Maruti Suzuki, Kotak Mahindra Bank, Bharat Electronics and Bharti Airtel falling 2-4% each to lead the losses.Amid the sharp selloff on Dalal Street, the India VIX, which measures market volatility, surged 26% to 14.67, reflecting heightened investor anxiety. Broader markets also came under pressure, with the Nifty Midcap 100 Index and Nifty Smallcap 100 Index declining by as much as 2%.All sectoral indices traded deep in the red, with the Nifty Bank Index, Nifty FMCG Index and Nifty Oil & Gas Index plunging more than 2% each.The overall market breadth remained sharply negative, with 2,525 stocks declining against just 694 advances on the NSE, while 86 stocks remained unchanged.Key factors weighing on Dalal Street today1) Trump says Iran ceasefire is overTrump said the memorandum of understanding with Iran “is over” and described Iranian leaders as “sick people” after a fresh wave of strikes in the Gulf threatened to derail the fragile ceasefire between the two countries.The development came after the US and Iran exchanged strikes, with Washington carrying out airstrikes on Iran and reinstating sanctions on Iranian crude sales. The escalation has reignited concerns over Middle East stability and the possibility of fresh disruptions to global oil supplies.“US Central Command forces have begun launching a series of powerful strikes against Iran to impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway,” CENTCOM said in a post on X.According to US Central Command, the strikes were carried out in response to Iranian attacks on three commercial vessels passing through the Strait of Hormuz.2) Oil prices soar Brent crude futures surged nearly 5% to $78.09 a barrel, while WTI crude futures climbed to around $74 a barrel on Wednesday as escalating geopolitical tensions and US President Donald Trump's declaration that the ceasefire with Iran was "over" fuelled fears of supply disruptions through the Strait of Hormuz, a critical global oil shipping route.3) Weak global cuesDalal Street mirrored the sharp selloff across global markets amid escalating geopolitical tensions.European markets tumbled after Trump's remarks, with the UK's FTSE 100, France's CAC 40 and Germany's DAX falling up to 2%. In Asia, Japan's Nikkei declined 1.5%, while South Korea's Kospi plunged 6% as the chip-led selloff intensified.Meanwhile, after Wall Street's sharp decline overnight, Dow Jones futures were down around 1%, signalling another weak start for US markets later in the day.4) Bond yields climbUS Treasury yields moved higher, adding to pressure on equities. The benchmark 10-year Treasury yield rose to 4.565%, while the 30-year bond yield climbed to 5.068%. The policy-sensitive two-year Treasury yield advanced to 4.197%.Higher bond yields typically make fixed-income assets more attractive relative to equities, prompting investors to shift away from riskier assets such as stocks.5) Rupee weakensThe Indian rupee weakened past 95.50 against the US dollar, falling 0.6% from the previous close as rising crude oil prices and a stronger dollar weighed on the domestic currency.Jateen Trivedi, Vice President – Research Analyst (Commodity & Currency) at LKP Securities, had expected the rupee to trade in the 94.60–95.30 range, with crude oil prices and foreign fund flows remaining key factors to watch. The breach of the 95.30 level indicates increased pressure on the domestic currency.