Mumbai: Indian markets felt the jitters of the escalating tensions between the two biggest oil producing countries Iran and the US. The benchmark Sensex fell over 530 points during the early trade on Monday as the Brent climbed over 2 per cent to $70 a barrel.

Meanwhile, prices of safe haven assets also skyrocketed over fears of further military escalation. Gold prices hit Rs 41,330 per 10 gram on Friday, hitting its highest level.

Observers expressed concern over Iran's announcement that it will no longer abide by any of the limits imposed by 2015 nuclear deal.

Besides, Iraq's parliament urged its leaders to expel troops from the US-led coalition after the US killed the high profile Iranian general Qassem Suleimani.

At 10 a.m., the Sensex was trading at 41,022.30 lower by 442.31 points or 1.07 per cent. It opened lower at 41,378.34 from its previous close of 41,464.61. The Nifty also fell over 1 per cent to trade at 12,082.95 lower by 143.70 points or 1.18 per cent.

In a series of aggressive tweets, US President Donald Trump said: "They (Iran) attacked us, & we hit back. If they attack again, which I would strongly advise them not to do, we will hit them harder than they have ever been hit before!

".. If Iran attacks an American Base, or any American, we will be sending some of that brand new beautiful equipment their way...and without hesitation," Trump said.