Financial markets are heading into a week of major central-bank and political decisions as escalating Middle East conflict drives energy prices higher. The Federal Reserve is expected by futures markets to consider a 25-basis-point rate increase on Wednesday, although investors remain divided after rates stayed unchanged throughout 2026. New Fed Chair Kevin Warsh has adopted a hawkish tone and is not expected to provide much forward guidance. The Bank of Japan is widely expected to raise rates by 25 basis points to 1.25% on Sept. 18, with markets focused on whether further increases could follow as the yen remains a key variable. Oil, diesel, jet fuel, European natural gas, food and copper prices are all adding to inflation concerns. BRICS leaders meeting in New Delhi on Sept. 12-13 will consider India’s proposal to link central bank digital currencies, while political tensions among members could constrain progress. Sweden’s Sunday election is also closely contested, with the anti-immigration Sweden Democrats seeking cabinet roles and greater influence over spending and tax policy.