Stock markets across the Arab world, Africa and Europe opened cautiously on Wednesday as renewed fighting between the United States and Iran pushed oil prices higher and intensified a global sell-off in government bonds.
Arab markets edge lower
Saudi Arabia’s Tadawul All Share Index opened at 11,090 points before declining approximately 0.2 per cent to around 11,078. Market breadth was negative, with about 180 companies falling compared with 66 advancing during early trading.
Qatar’s main index also slipped approximately 0.1 per cent to 9,863 points. Investors remained focused on the risk of further disruption to energy supplies through the Strait of Hormuz.
Higher oil prices can support Gulf energy companies and government revenues. However, the escalating conflict has also increased regional security risks and raised concerns about transport, insurance and business costs.
African trading remains subdued
South African markets opened with a cautious tone. The rand remained nearly unchanged at around 16.16 against the US dollar, while the yield on the country’s benchmark 2035 government bond increased by 6.5 basis points to 8.745 per cent.
Falling gold prices created additional pressure for mining-related assets. Gold, one of South Africa’s most important exports, declined to its lowest level in more than three weeks as the stronger dollar and higher bond yields reduced demand.
Investors were also waiting for US employment figures that could influence expectations for global interest rates.
European shares extend losses
Europe’s STOXX 600 fell approximately 0.6 per cent during early trading, extending the region’s weak start to September. Germany’s DAX declined around 0.3 per cent.
Energy companies received some support from higher crude prices, but airlines, manufacturers and interest-rate-sensitive businesses faced renewed pressure.
Brent crude rose to almost $96 a barrel after the latest US-Iran exchange of attacks. Higher energy costs have revived inflation concerns and strengthened expectations that central banks may keep borrowing costs elevated or increase rates further.
The combination of geopolitical uncertainty, expensive energy and rising government bond yields is expected to keep markets volatile throughout Wednesday.
Newshub Editorial in Europe, Africa and the Middle East – 2 September 2026
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