Indian markets came under pressure after President Donald Trump’s comments on Iran sent oil prices sharply higher. The benchmark stock index recorded its biggest decline in three months, while the rupee weakened despite intervention by the Reserve Bank of India.

Speaking to reporters before a Nato summit and alongside Nato chief Mark Rutte, Trump said he considered the ceasefire agreement with Iran to be “over” after the latest exchange of attacks.

Describing Iran’s leadership as “scum”, “cuckoo” and “liars”, Trump said he had no interest in further negotiations, calling them “a waste of time”, although he said US negotiators were free to continue discussions if they wished.

The NSE Nifty 50 Index slid 2.1%, led by declines in Reliance Industries and banking stocks, as investors reacted to renewed fears of escalating conflict in the Middle East. The downturn interrupted a recent recovery in Indian assets that had been supported by hopes for lower geopolitical risks and Reserve Bank of India measures to steady the currency.

Oil prices rose around 6% to $79 after Trump said the ceasefire with Iran had ended, although they stayed well below the highs reached during the strait’s complete closure. The RBI stepped into currency markets by selling dollars, but the rupee still closed 0.6% weaker, while India’s 10-year bond yield rose to 6.7%.

Trump’s remarks followed renewed US-Iran strikes after tanker attacks in the Strait of Hormuz. Iran responded by launching strikes against US military sites in Bahrain and Kuwait, while the US restored sanctions on Iranian oil exports.