Global Markets Today, September 2, 2026: Asia Slides, Oil Surges On Iran Escalation; Indian Markets Set For Weak Start

Mumbai, September 2: Indian equity benchmarks are likely to open lower on Wednesday, tracking a broad risk-off move across global markets as Asian stocks tumbled, Wall Street ended lower and crude oil prices climbed on renewed concerns over disruptions to energy supplies following the latest escalation in the U.S.-Iran conflict. 

Asian Markets Slide 

Asian equities came under heavy selling pressure in early trade, with MSCI’s broadest index of Asia-Pacific shares outside Japan falling 1.6%. South Korea’s KOSPI dropped 3%, while Japan’s Nikkei 225 declined 2.6%. 

The selloff followed heightened geopolitical tensions and a sharp rise in oil prices, with investors also wary of the impact of higher energy costs on inflation and global interest rates. 

Wall Street Ends Lower 

U.S. stocks started September on a weak footing, with all three major benchmarks ending lower as rising Treasury yields and oil prices weighed on sentiment. 

The Dow Jones Industrial Average fell 0.79%, while the S&P 500 declined 0.71% and the Nasdaq Composite lost 1.03%. 

Investors turned cautious as the rise in energy prices raised fresh concerns about inflation and the trajectory of U.S. monetary policy. Energy stocks were among the few gainers, while consumer discretionary and semiconductor stocks came under pressure. 

Oil Climbs Above $95 

Crude oil remained the biggest source of concern for global markets. Brent crude rose 0.87% to $95.47 a barrel in Asian trade on Wednesday after touching a five-week high on Tuesday following the latest U.S. strikes on Iran. 

Markets are increasingly focused on the possibility of disruption to oil flows through the Strait of Hormuz, a key transit route for global energy supplies. Any prolonged disruption could push crude prices higher and add to inflationary pressures across major economies. 

Yields Add To Pressure 

Higher oil prices have also complicated the outlook for interest rates. The U.S. 10-year Treasury yield climbed to 4.8122%, its highest level in almost three years. 

Markets have also increased bets on a Federal Reserve rate hike this month, with fed funds futures pricing in roughly a 67% probability of a 25-basis-point increase, compared with around 40% a week earlier. 

The combination of higher yields and rising crude prices is particularly uncomfortable for emerging markets, as it can strengthen the dollar, tighten global financial conditions and encourage foreign investors to shift towards safer assets. 

What It Means For Indian Markets 

The global setup points to a weak start for Indian equities, with the Nifty and Sensex likely to come under pressure at the open. 

Higher crude prices are a key negative for India given the country’s dependence on oil imports. A sustained rise in Brent could put pressure on inflation, the rupee and corporate margins, while also complicating the outlook for domestic interest rates. 

Investors are likely to track oil prices, the rupee and U.S. bond yields closely, alongside developments in the Middle East. Oil-sensitive and rate-sensitive sectors could remain under pressure, while energy stocks may see relative strength. 

With global equities beginning September on a cautious note, volatility is likely to remain elevated in Indian markets, particularly if crude continues to climb and geopolitical tensions show no signs of easing. 

Source

• Exchanges