Arab, African and European markets open lower as oil prices surge and geopolitical tensions intensify

Stock markets across Europe, the Middle East and parts of Africa came under pressure on Thursday, 22 October 2026, as renewed attacks on Saudi Arabian infrastructure pushed oil prices higher and unsettled international investors. European shares opened in negative territory, Gulf exchanges declined, and several African markets showed weakness amid concerns over inflation, corporate earnings and regional instability.

Europe – Stocks retreat at the opening
Europe’s STOXX 600 index fell approximately 0.8% in early trading, reversing much of Wednesday’s gains.

Banking and luxury shares led the decline. Barclays dropped after reporting quarterly profits below expectations, while French luxury group Hermès fell sharply following disappointing sales figures.

Britain’s FTSE 100, Germany’s DAX and France’s CAC 40 also faced selling pressure.

Higher energy costs and concerns over French government borrowing added to the cautious sentiment.

Arab markets – Saudi attacks shake investor confidence
Gulf stock markets declined following renewed drone and missile attacks attributed to Yemen’s Houthi movement.

Saudi Arabia’s benchmark Tadawul All Share Index fell approximately 1.2% during Thursday’s session.

Saudi National Bank declined around 1.9%, while energy giant Saudi Aramco lost approximately 0.5%.

Dubai, Abu Dhabi and Qatar also recorded losses as investors assessed the possibility of further regional escalation.

The attacks on Saudi infrastructure raised concerns about oil production, transportation and security across the Gulf.

Africa – Johannesburg and regional exchanges under pressure
African markets presented a mixed picture, although weakness emerged across several exchanges.

South Africa’s Johannesburg market showed losses of approximately 0.8%, while Morocco’s MASI and the regional West African BRVM index also traded lower.

Nigeria’s market demonstrated greater resilience, posting a modest advance.

In Egypt, investors continued assessing regional geopolitical developments alongside domestic corporate performance following Wednesday’s gains.

Oil becomes the dominant market factor
Brent crude climbed above $111 per barrel, driven by fears of further disruptions to Middle Eastern energy supplies.

Higher oil prices can support petroleum exporters but increase costs for countries dependent on imported energy.

For European and African economies, sustained increases threaten to complicate inflation control and monetary policy.

Outlook – Investors brace for further volatility
Thursday’s opening demonstrated how quickly geopolitical developments can outweigh positive corporate earnings.

Investors will continue monitoring developments in Saudi Arabia, oil prices, government bond markets and company results.

With energy security returning to the centre of financial markets, uncertainty is likely to remain a defining feature of trading across all three regions.

NewsHub Finance | Global Markets | 22 October 2026