Israel-Iran Conflict Rattles Global Markets

Israel’s preemptive strike on Iran, carried out jointly with the US, has ignited geopolitical fears and driven global markets to open on a weak footing. Israeli-US military operations entered their third day with casualties reported on all sides, marking the most severe regional conflict in decades.

US stock futures fell sharply as the Iran–US conflict escalated into a broader Middle East war, triggering another spike in oil prices. Dow Jones futures slid approximately 550 points, S&P 500 futures dropped 63 points, and Nasdaq futures declined roughly 270 points in early Monday action.

Oil prices recorded their steepest single-session jump in four years after escalating US–Israeli military strikes against Iran shook global energy markets and effectively shut down the Strait of Hormuz. Prices had initially surged more than 8% to multi-month highs as Iran and Israel intensified attacks, damaging tankers and disrupting shipments from the key producing region. Gains have since moderated to around 5%.

Shipping through the Strait of Hormuz — a narrow chokepoint off Iran’s coast through which roughly one-fifth of the world’s oil and significant volumes of natural gas transit — has come to an abrupt halt, as tanker owners and commodity traders suspend operations pending clarity on the widening conflict.

Gold rose more than 2%, in early sessions, as renewed Middle East hostilities drove investors toward traditional safe-haven assets. The move extended the prior week’s gain of over 3%, itself fueled by the growing deployment of US forces in the region.

Asian equities slid approximately 1.5%, with futures on major US and European indices also pulling back in the wake of the US–Israeli military action against Iran.

China’s Two Sessions- Markets will also keep an eye on China’s annual “Two Sessions” meetings from March 4–11, where the 15th Five-Year Plan (2026–2030) is expected to be unveiled. The plan is likely to set a lower growth target in the 4.5–5% range for 2026, down from around 5 per cent last year, alongside a moderately expansionary fiscal stance, with the deficit ratio steady at 4 per cent of GDP.

Indian Auto stocks will react to the February numbers announced yesterday.

Nifty is poised to open 0.5%–0.7% lower, with selling pressure concentrated in oil-sensitive sectors aviation, automobiles, and tyres against a broad risk-off backdrop.

The Rupee faces headwinds from rising import costs for energy. Markets are likely to find their footing after the initial weakness, as leveraged positions are unwound through the truncated trading week.

Source: HSL Prime Daily, 02 March 2026