Global Stocks Fall Amid Middle East Tensions, Rising Oil Prices

By EC Assets · Published 28 September 2026

Global stock markets experienced declines as Middle East tensions weighed on investor sentiment and lifted oil prices. The pan-European Stoxx 600 index edged lower. U.S. stocks also slipped, with the Nasdaq leading losses. An uncertain outlook for peace in the Middle East pushed bond yields higher on Thursday. Investors weighed dissonant reports regarding attacks and negotiations in the region. Middle East tensions contributed to global stocks retreating, alongside fears of interest rate hikes. Oil prices extended gains, with Brent crude approaching $100 a barrel. The U.S.-Iran stalemate helped lift oil prices. Mideast oil exports rebounded in September as Saudi Arabia boosted shipments. New Middle East strikes contributed to oil surging. Expectations for Federal Reserve rate hikes also influenced markets. Stronger-than-expected U.S. employment data fueled these expectations. This occurred after a sharp selloff in technology shares. The dollar steadied near a two-month high as Fed rate hike bets built. Middle East energy routes are undergoing changes. A proposed $10 billion U.S.-Arab fund aims to target pipelines and infrastructure. This initiative seeks to reduce reliance on the Strait of Hormuz. It also intends to support steadier export flows. Bank of America stock-market strategists reported their discussion time breakdown. Following visits to the U.S. Switzerland, and Scandinavia, 80% of their discussions focused on AI. Interest rates accounted for 15% of discussions, while the Middle East represented 5%. This article is intended for informational purposes only. It does not constitute investment advice.