L&T Shares Crash Nearly 7% as Middle East Tensions Surge: Why Rising Iran-Israel Tensions Are Spooking Indian Markets
Larsen & Toubro (L&T), India's leading engineering giant, saw its shares plunge up to 7.4% today, 2 March 2026, amid the escalating Iran-Israel-US conflict. Investors worry about the company's big ties to the Middle East, where tensions are disrupting business.
Timeline of Iran-Israel-US Conflict: What Happened Step by Step
The conflict kicked off on Saturday, 28 February 2026, when the US and Israel struck targets in Iran. These attacks killed Iran's Supreme Leader, Ayatollah Ali Khamenei, a huge blow to the regime.
Iran hit back fast, firing missiles at US naval bases in Bahrain, UAE, and Kuwait. On Sunday, Israel bombed Tehran again, and Iran launched more attacks across the Middle East and Israel.
Today, 2 March 2026, fighting spreads to Lebanon with Israel targeting Hezbollah after rocket fire. Airspace is shut, travel is stalled, and oil routes like the Strait of Hormuz face risks from ship attacks.
President Trump says US operations continue until goals are met, hitting Revolutionary Guard sites and more. Global markets shake as oil prices swing and safe assets like gold rise.
L&T Share Price Drop: Updates and Market Reaction on 2 March 2026
L&T shares tumbled up to 7.4% on the BSE and NSE, hitting a low of ₹3,960 from Friday's close of ₹4,286.5. As of 11:50 AM IST, the stock traded at around ₹4,030.5, down over 6% amid heavy selling.
The slide mirrors broader market fears, with the Sensex down over 1,100 points and the Nifty below 24,900 in early trade. L&T lost ground as Middle East exposure makes it a top worry for traders.
Other firms like TCS, KEC International, and jewellers such as Kalyan Jewellers also dipped 4-6%, showing wider Indian business risks from the war.
L&T Middle East Exposure: Order Book Risks and Company Response
L&T has deep roots in the Middle East, key to energy, renewables, infrastructure, and tech projects. About 49% of its ₹3.6 lakh crore order book is international, with over 80% from UAE, Saudi Arabia, and the region.
JM Financial notes 37% of the order book and 33% of nine-month FY26 inflows tie to the area. Recent wins include up to ₹10,000 crore from the Middle East and India.
L&T says all staff, workers, and assets are safe. It monitors closely, issued travel advisories, stays in touch with clients, and follows government advice.
The firm holds FY26 guidance: over 10% order growth, 15% revenue rise, and 8% core margins, despite risks.
Business Impact on Indian Firms: L&T and Beyond in Middle East Tensions
For L&T, war means project delays, stretched payments, and supply issues in a vital market. A long fight could hit execution and new orders hard.
Indian IT firms face cuts in US client spending and delays, as Middle East unrest adds to global caution. Jewellers and builders with Gulf presence see consumer dips too.
Oil volatility raises costs economy-wide, slowing growth plans and jobs. L&T's global footprint in 50+ countries helps, but the Middle East is core.
Experts eye if conflict eases soon. L&T's strong base and recent Saudi boom offer hope, but markets stay on edge.
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