The local currency plummeted to a record low on Thursday under pressure from a spike in global crude oil prices amid growing hostilities between the US and Iran, falling below the 95-per-dollar threshold.

After hitting a record low of 95. 07 in early trade, the currency fell to an intraday low of 95. 126 against the US dollar before falling further to about 95. 20 throughout the session.

The fall also comes after hawkish messages from US Federal Reserve officials, which have boosted the dollar and increased US bond rates. The central bank, headed by Jerome Powell, maintained benchmark interest rates at its most recent policy session.

So far, the rupee has lost around 5. 8% of its value in 2026.

In the meanwhile, as the US increased pressure on Iran, crude oil prices continued to rise, adding to their highest close in almost four years. Fears of ongoing supply interruptions have increased as a result of Washington’s actions to confiscate tankers with ties to Tehran and its indication that its naval blockade will not be loosened.

Brent crude prices were about $120 a barrel after rising more than 6% on Wednesday to their highest point since June 2022. It was trading at around $114. 10 per barrel on Thursday, which is a 3% increase over the previous close.

Similar to this, the price of US West Texas Intermediate (WTI) was last recorded at $110. 28 a barrel, up about 3% from above $107.

Iranian authorities have made no indication that they are backing down, and US President Donald Trump has stated that he will not remove the naval blockade of Iran’s ports until a nuclear agreement is reached.

The negative attitude was also seen in India’s stock markets, where the Sensex and Nifty indexes fell about 1% in early trading.