Global Markets Plunge as Middle East Conflict Escalates
Global stock markets fell sharply as Iran-backed Houthis and Iran launched drone strikes in Saudi Arabia and the Strait of Hormuz, prompting a U.S. embassy evacuation.
Global stock markets experienced a sharp sell-off on October 22, 2026, triggered by escalating Middle East conflict and corporate guidance shifts. Brent crude oil climbed to $112 per barrel after Iran-backed Houthis launched drone strikes on Saudi airports and the Saudi Aramco Shaybah oil field, while Iran conducted drone attacks on shipping vessels in the Strait of Hormuz.
In response to the instability, the Federal government of the United States ordered its staff to vacate the embassy in Riyadh. Reports indicate that Washington and Israel plan to restart major combat operations against Iran following the U.S. midterm elections.
Market declines were widespread, affecting the Nasdaq, S&P 500 futures, and major Asian indices including Japan's Nikkei 225 and South Korea's KOSPI. Adding to the volatility, Tesla shares fell 5.35% after the company reduced its 2026 capital expenditure guidance from $25 billion to $20 billion.
