Mumbai (Maharashtra), [India], July 8 (ANI): The Indian stock market tanked immediately after US President Donald Trump signalled an end to the ongoing peace deal negotiations between US and Iran claiming that the deal was over.

In a news conference at the sidelines of the NATO Summit at Ankara said, 'To me, I think it's over. I don't want to deal with them anymore. They're scum... They're led by sick people... I'll speak to our negotiators. They want to negotiate--they're good people... but they have to come back to me. As far as I'm concerned, it's just a waste of time dealing with them.'

The US President also acknowledged renewed strikes on Iran which took place on Tuesday night. The US President accused Iran of reneging on its promise to restrain itself from firing at vessels in the Strait of Hormuz.

'We attacked, very powerfully last night, the very dangerous people from Iran... There's something wrong with them. We say, 'Go and do your funeral stuff,' and instead of that, they start shooting rockets at ships yesterday. So we hit them very hard last night,' he said.

The remarks from the US President triggered a sharp wave of risk-off sentiment in the final hour of trade, as fears of a renewed rise in Oil prices sank in.

The Nifty 50 plunged over 500 points, or more than 2 per cent, to 23,887.45, while the Sensex tumbled over 1,600 points, or around 2 per cent, to 76,555. Broader markets also came under heavy selling pressure, with Nifty Financial Services and Nifty PSU Bank among the worst-performing indices. India VIX surged over 28 per cent, reflecting heightened market volatility.

Market experts said Trump's comments intensified concerns over a prolonged conflict in West Asia, sending oil prices sharply higher. Brent crude rose nearly 4 per cent to USD 76.71 per barrel.

'The sudden collapse of the Memorandum of Understanding (MOU) between the US and Iran has triggered a sharp wave of risk-off sentiment across global financial markets, hitting Indian equities particularly hard,' said market and banking expert Ajay Bagga.

'President Trump's declaration that the peace process is 'over' injects severe geopolitical uncertainty right back into the critical Strait of Hormuz transit corridor. With crude oil prices surging rapidly on renewed supply and security fears, India--as a major energy importer--faces a double whammy of potential imported inflation and fiscal pressure,' Bagga said.

He added that investors were rushing to cut exposure. 'Investors are aggressively shedding risk, leading to the sharp sell-off on the D-Street today as the global market landscape rapidly recalibrates for a prolonged, volatile standoff in West Asia.'

Bagga noted that markets were rapidly pricing in the risk of further escalation.

'We still believe this is posturing from both sides to cater to their domestic compulsions, but the risk of escalation remains on the table and markets are pricing it in a hurry. Hopefully, the regional powers will prevail upon both the US and Iran to come back to the negotiation table,' he said.

With crude oil prices climbing and geopolitical risks back in focus, Bagga expect market volatility to remain elevated until there are clearer signs of de-escalation. (ANI)