Preparing for a fight in Osaka (dialectal んやったなぁ)
Subject: ironic story; place: Osaka; time: pre-mordern; situation: a boy is threatened with a sword-fight. More threatened than really called for a duel, so he has time.
The hero of the story says to himself:
>
And starts to search through his belongings for something to use as a weapon.
* * *
The situation is clear and the meaning is easy to deduce or at least I can imagine what I would say in such a situation...
...except for the latter . Either it leads to the next scene (searching the belongings):
> 1 Gee, things turned bad... I wonder do I have anything for a weapon...
or is just a statement of resignation:
> 2 Now that things turned that way, I should have brought some weapon with me...
that can be said before running away (as well as before searching for a weapon).
How shall I interpret here (as 1 or 2 or maybe something else)?
> ~
means "should have", and is just a colloquial dialectal form of that. So pretty much your number 2.