Indian stock markets saw a sharp decline on September 2, 2026, with the Sensex falling 600 points and the Nifty dropping below 23,850 due to escalating West Asia tensions.
Brent crude oil prices surged following reports of attacks on tankers in the Strait of Hormuz, fueling investor fears of global inflation and supply chain disruptions.
Analysts warn that sustained high oil prices could negatively impact India's current account deficit and force the RBI to maintain a cautious stance on interest rates.