By Shishir Prashant 
PrashantNews
The Indian stock market on Monday again crashed as crude oil prices spiked dramatically toward $120/barrel amid fears of further escalation of the Iran war.
The benchmark Sensex fell to 77,566.16 by -1352.74 or 1.71% as most the stocks remained in red throughout the trading session. UltraTech Cement, Maruti, M & M, SBI, Tata Steel and Adani Ports were the prominent stocks which lost more than 3 percent. Aviation stocks led by Indigo also took a big hit as only selected flights in the Gulf and adjoining countries were allowed.
In the Nifty, Reliance Ind was the only stock which was in green at Rs 1,418.60 up by 13.80(0.98 %) at the closing bell.
Key Gulf producers curbed output, the vital Strait of Hormuz remained functionally closed, and the US threatened further escalation in a conflict that has severely disrupted global energy markets.
Oil jumped 25%, with Brent on track for a record one-day gain, while OPEC producers Kuwait and Iraq cut output over the weekend as the crucial Strait of Hormuz remained effectively shut.
Across Asia, which sources 60% of its oil from the Middle East, equities slid and the dollar rose as worries grew that the disruption in energy supplies could be prolonged.
Iran named Mojtaba Khamenei to succeed his father Ali Khamenei as supreme leader, a move that is expected to escalate the Iran war. The Sunday attacks on Iranian oil storage facilities fuelled fears of retaliatory strikes on energy facilities.
Iraq cut oil production at its main southern oilfields by 70% to 1.3 million barrels per day, three industry sources said on Sunday, while Kuwait Petroleum Corp began cutting oil output on Saturday and declared force majeure.
No. 2 LNG exporter Qatar has already halted exports of the superchilled fuel and analysts predict that the United Arab Emirates and Saudi Arabia will also have to cut output soon as they run out of oil storage due to the Strait of Hormuz closure.