Oil on Fire: Kiss of Death Awaits Global Stock Markets

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Global markets may go in tailspins as oils race above $80 amid Middle East crisis

By S. JHA

Mumbai, March 1, 2026 — Investors have been spending sleepless nights over exploding Middle East. The Brent crude blasting to $80 per barrel has turned sentiments nightmarish. A kiss of death per consensus opinions awaits the global markets.

Indian markets are now dreading the scope of damage. The last half hour collapse of the Indian markets on Friday had already shaken the sentiments.

Market participants are expecting one to three per cent lower opening of the Nifty and Sensex on Monday. They add the caveat that the overnight developments in the Middle East will also be factors to watch out for.

Analysts are projecting oil to shoot to $100 per barrel soon. This will take the heart out of the markets. India imports 85 percent of oil requirements. The Middle East crisis directly hits the Indian economy hard per analysts.

A swift change of regime in Iran only can save the markets from the worst case scenario per analysts. But such prospects seem distant. A prolonged war in the Gul region can send markets crashing deeper.

Paints, aviation, and oil marketing stocks are likely to face the maximum pain on Monday morning. Panits companies may face margin pressure if oil prices climb further. The same holds true for aviation and oil marketing companies. The aviation disruptions on lucrative Middle East routes will also be another dampener.

But oil companies such as ONGC and Oil India are likely to sharply trend up. Such stocks react positively to tension in the Gulf region.

Analysts also stated that defence stocks may buzz due to war situations. The likes of Bharat Electronics could be in focus. The air defence and drone stocks may also be in the spotlight.

Analysts warn that any aggressive bets to buy into a crashing market could be a risky affair. With none predicting the bottom of the markets, they argue that fresh investments should wait for situations to stabilise. A risk-off approach may persist in the global markets, they argue.

(This article makes no recommendation for any kind of trades in the stock markets.)