The Indian rupee experienced a significant decline, closing at 95.71 per dollar, down 0.8%, following a spike in international crude oil prices due to escalating tensions between Iran and Israel. This drop erases most of the gains made on Friday, when the rupee had its strongest single-day performance in two months due to government measures aimed at attracting foreign investment. Analysts noted that the optimism from these measures was overshadowed by adverse global conditions, including rising crude prices and robust US jobs data that bolstered expectations for further interest rate hikes by the US Federal Reserve. Brent crude oil prices surged more than 4% to $96.86 per barrel, while US Treasury yields increased significantly, further pressuring the rupee. Despite the Indian central bank's efforts to draw in foreign capital, including tax exemptions for foreign portfolio investors, the effectiveness of these initiatives is uncertain given the ongoing geopolitical tensions and potential economic risks. The rupee has depreciated 10.5% against the dollar over the past year, reflecting broader market challenges.