Indian Markets Drop as US-Iran Tensions Spike Oil Prices

Indian equity benchmarks, the BSE Sensex and NSE Nifty, opened lower on Monday, August 31, 2026, as renewed geopolitical tensions between the United States and Iran drove Brent crude oil prices above $90 per barrel. This escalation triggered a risk-off sentiment across Asian markets, including Japan's Nikkei and South Korea's Kospi.

Market volatility increased following statements from Kevin Warsh, the chief of the Federal Reserve, who indicated that persistent inflation would require further action. These comments led investors to anticipate a potential interest rate hike during the Federal Open Market Committee meeting scheduled for September 15-16.

While the metals and IT sectors saw significant declines, HDFC Bank recorded gains despite ongoing speculation regarding the successor to CEO Sasidhar Jagadishan. Downward pressure was further intensified by Foreign Institutional Investors, who offloaded equities worth Rs 5,039.80 crore on the preceding Friday.