Global markets experienced significant turmoil on October 22, 2026, as the Nasdaq 100 fell by nearly 3% and Brent crude oil prices surged to $112-$113 a barrel, influenced by a US tech rout and escalating geopolitical tensions in the Middle East.

This convergence of events signals a period of heightened economic uncertainty, impacting both the technology sector's investment strategies and the stability of global energy supplies. Investors are reassessing the sustainability of AI-driven growth and grappling with the immediate threats to oil production and shipping routes.

What the records show

The Nasdaq 100, a tech-heavy index, dropped nearly 3% on October 22, marking its worst day since June. This downturn followed earnings reports from major tech companies Meta Platforms and Tesla, which fueled investor concerns about the financial returns of massive artificial intelligence (AI) investments.

Meta Platforms reported a negative free cash flow of $2.12 billion in the third quarter of 2026, the first such instance since its 2012 initial public offering. This was driven by $34.91 billion in capital expenditures, primarily for AI infrastructure, which outpaced $32.79 billion in operating cash. Meta shares fell more than 7% as investors reacted to an increased AI spending forecast. Tesla, while reporting an unexpected $1.5 billion in free cash flow, cut its full-year capital expenditure guidance to $20 billion from over $25 billion. This reduction sparked concerns among investors regarding the pace of its AI and robotics projects.

Concurrently, Brent crude oil prices climbed to a five-month high, reaching $112-$113 a barrel. This rise was triggered by escalating geopolitical tensions in the Middle East. Houthi attacks targeted Saudi Arabia, including a strike on King Fahd International Airport in Dammam that killed two people and injured eight. A drone attack on Saudi Aramco's Shaybah oilfield also resulted in two deaths.

Further disruptions emerged in the Strait of Hormuz, where Iran reported that seven oil tankers were attacked or damaged by naval mines. Four of these tankers reportedly caught fire, and three others sustained damage. These incidents, which Iran's state television attributed to the Revolutionary Guard's navy, have not been independently verified.

What changed and for whom

The dual pressures from tech spending anxiety and Middle East instability led to a global “risk off” sentiment in markets. Investors moved away from riskier assets, with some seeking safety in currencies like the yen.

In response to the growing threat from Houthi attacks, the US State Department ordered the evacuation of non-emergency diplomats and their families from Saudi Arabia. Saudi Aramco staff also evacuated their Dhahran headquarters, marking the first such request since the start of the Iran war.

What we could not confirm

PrimaryBrief could not independently verify the specifics of the claimed attacks on seven oil tankers in the Strait of Hormuz by Iran's Revolutionary Guard's navy.