Stock Market Prediction for Today: How Share Markets Across the World Will React to the Iran-Israel War
Global stock markets are set to plunge on March 2, 2026, as the Iran-Israel war triggers a spike in oil prices toward USD 100. With the Strait of Hormuz closed and the Nifty 50 expected to gap-down, investors are fleeing to gold and silver. Experts warn of high volatility as Operation Epic Fury disrupts global energy and supply chains.
London, March 2: Global financial markets are bracing for a highly volatile session on Monday, March 2, 2026, as investors process the dramatic escalation in the Middle East following joint US-Israeli strikes on Iran. With the confirmed death of Supreme Leader Ayatollah Ali Khamenei and reports of retaliatory missile strikes on US and Israeli targets, a "risk-off" sentiment is expected to dominate. Analysts predict a sharp "gap-down" for equities worldwide, while safe-haven assets like gold and crude oil are projected to surge as the threat of a wider regional war becomes a reality.
The primary concern for global traders is the "effective closure" of the Strait of Hormuz, a vital chokepoint through which 20% of the world's oil supply passes. On Sunday, several major shipping and oil companies suspended transits after the Iranian Revolutionary Guard Corps (IRGC) reportedly warned that "no ship would be allowed to pass." This development has triggered fears of a supply shock, with Brent crude on track to breach USD 80 per barrel immediately upon the opening of trade. Stock Market Prediction for March 2: How Share Markets Will React to the Iran-Israel War.
Stock Markets Prediction for Today: Global Gap-Down Expected
Stock futures across major indices indicate a somber start. In the US, Dow Jones and Nasdaq futures have signaled a weak opening, as the cost of "Operation Epic Fury" and the prospect of a prolonged conflict dampen investor confidence. In Europe, the FTSE 100 is expected to fall by at least 0.5% after reaching record highs on Friday, as the energy-heavy index grapples with rising fuel costs and supply chain risks.
In Asia, the Nifty 50 and Sensex are anticipated to face significant pressure. Market experts suggest a short-term correction of 1% to 1.5% as India, which imports 85% of its oil, faces an immediate inflationary threat. Sectors sensitive to oil prices, such as aviation, paints, and logistics, are likely to see the heaviest selling, while banking stocks may face strain if bond yields rise in response to energy-driven inflation. Why Is Bitcoin Price Falling?
Crude Oil: The USD 100 Barrel Threat
Oil remains the "macro circuit breaker" for this conflict. While Brent crude settled near USD 73 on Friday, brokerage data from IG shows US crude is on track to rise by 9% as trading resumes. Although OPEC+ agreed on Sunday to increase output more than expected to stabilize the market, analysts at Royal Bank of Canada and Barclays warn that a sustained blockade of the Strait of Hormuz could push prices past the USD 100 mark. Such a spike would add an estimated 0.6–0.7 percentage points to global inflation, complicating the path for central bank interest rate cuts.
As equities retreat, the flight to safety is expected to drive Gold and Silver prices sharply higher. Bullion markets are forecasting a "gap-up" opening of 3–6%, with gold potentially testing new all-time highs as a hedge against geopolitical instability. The Swiss Franc and Japanese Yen are also seeing increased demand, while Bitcoin has notably failed to act as a hedge, trading instead like a risky asset and slipping over the weekend alongside equities.
(The above story first appeared on LatestLY on Mar 02, 2026 12:05 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).