Indian Markets Weaken Amid US-Iran Tensions and Higher Oil Prices
Indian markets are expected to open weakly on Monday, August 31, 2026, due to rising global tensions and higher oil prices. The US-Iran conflict has driven Brent crude oil prices above $89 per barrel, which could impact India's trade balance and inflation.
The Indian economy imports a significant portion of its oil requirements, making it vulnerable to fluctuations in energy costs. The country's corporate profit margins may also be affected by the increased cost of raw materials.
Additionally, the US Federal Reserve has signaled a hawkish tone, with Fed Chair Kevin Warsh emphasizing the need for further action on inflation. This has led to an increase in market expectations for a potential interest rate hike in September, with the probability rising to nearly 60 percent.