Indian markets were expected to open sharply lower in trade, as crude oil prices surged 4 per cent, as Iran launched multiple missiles against at least two U.S. air bases in Iraq.
Dow Futures too were pointing sharply lower with a drop of more than 300 points likely.
Following reports of the attacks, White House press Secretary Stephanie Grisham said President Donald Trump "has been briefed and is monitoring the situation closely and consulting with his national security team."
The Dow Jones Futures was pointing to a cut of nearly 1.5 per cent, while the Japanese Nikkei fell as much as 2.36 per cent.
A cut of near 1-2 per cent for the Indian markets is not ruled out, given rising tensions in the Middle East.