In early trade on Friday, the Indian rupee fell 36 paise to 94.58 against the US dollar, influenced by escalating tensions between the United States and Iran, which have jeopardized a fragile ceasefire. The Sensex index dropped 353.50 points to 77,491.02, while the Nifty fell 109.25 points to 24,225.20. This decline in the rupee follows a brief recovery of over 1% in the previous sessions, rebounding from a record low of 95.4325 earlier in the week. The rise in oil prices, now above $100 per barrel, is attributed to fears surrounding the Strait of Hormuz, where Iranian accusations of US violations of a ceasefire have heightened geopolitical risks. Despite efforts by the central bank to stabilize the rupee, market participants believe that a sustained recovery hinges on stabilizing oil prices and easing dollar outflows, as persistent demand from oil refiners continues to pressure the rupee.