The Cairo Stock Exchange initially fell 5.6 percent when it opened. This was after the Saudi stock exchange's Tadawul index had fallen almost 5 percent at the opening, only to recover slightly.
All sectors except energy weighed on the Saudi stock market; oil giant Saudi Aramco, among others, rose more than 3 percent.
Oil prices are expected to trend upwards
Geopolitical concerns are hitting risk appetite, as was evident in trading in the cryptocurrency bitcoin, which fell to $63,000 per bitcoin - close to a year-low. However, there was some recovery on Sunday, to $67,200 per bitcoin.
The price of oil is expected to rise sharply as the war unfolds in some of the world's largest oil producers around the Persian Gulf and supply disruptions have already halted many shipments of both gas and oil.
Even before the attack, Brent oil had risen to almost $73 per barrel on Friday, an increase of almost 20 percent since the turn of the year and the highest oil price on the world market since July 2025.
"A significant portion of the world's oil transport passes through the Strait of Hormuz, a strategically crucial passage for global oil trade. If flows there were to be disrupted, it could create an imbalance in supply. Even without actual disruptions, increased risk in the region could lead to higher transport and insurance costs," writes strategist Shoka Åhrman at SPP Pension & Insurance in a comment emailed to TT.
Swiss franc and gold
Other supply disruptions in sea freight are also feared, as shipping routes in the Red Sea and through the Suez Canal are associated with significant risks. In addition, Israel has shut down large natural gas facilities, which could affect natural gas prices.
Traditionally safe havens in times of turmoil such as the Swiss franc and gold are also expected to get a boost, while market interest rates are under pressure as investors choose government securities to reduce the risk of large losses.
"We are monitoring developments, but an initial and potentially short-term reaction should be negative with a flight to safer assets," writes Jon Arnell, investment manager at von Euler & Partners, in a comment emailed to TT.
