Middle East tensions have pushed oil prices above eighty-five dollars a barrel. Indian equities declined moderately after recent geopolitical developments. Investors are betting on Donald Trump's tendency to de-escalate conflicts. This resilience suggests markets are accustomed to regional geopolitical tensions. Higher oil prices are negative for India, but investors expect rewards.

Financial markets entered the week cautiously after renewed conflict in the Middle East revived concerns over oil supplies, inflation and global interest rates.

Middle East tensions have pushed oil prices above eighty-five dollars a barrel. Indian equities declined moderately after recent geopolitical developments. Investors are betting…