{"id":73673,"date":"2026-10-27T05:38:15","date_gmt":"2026-10-27T09:38:15","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-saudi-oil-attack-and-mercedes-benz-outlook-cut\/73673\/"},"modified":"2026-10-27T05:38:15","modified_gmt":"2026-10-27T09:38:15","slug":"global-markets-react-to-saudi-oil-attack-and-mercedes-benz-outlook-cut","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-saudi-oil-attack-and-mercedes-benz-outlook-cut\/73673\/","title":{"rendered":"Global Markets React to Saudi Oil Attack and Mercedes-Benz Outlook Cut"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Saudi Arabia contained a fire at the Ras Tanura oil hub<\/strong> following a Houthi missile and drone attack, causing <strong>Brent crude to rise 0.6% to $116.50 per barrel<\/strong>.<\/li>\n<li><strong>Mercedes-Benz (<a href=\"\/stock\/MBG\">MBG<\/a>) slashed its 2026 profit margin outlook<\/strong> to 2%\u20133% (down from 3%\u20135%) due to weakening demand in China and rising material costs.<\/li>\n<li><strong>Israel reported a 16.68% voter turnout by 10:00 AM<\/strong>, the highest early figure since 1981, as the country votes in a high-stakes general election.<\/li>\n<li><strong>The ECB reported a further tightening of credit standards<\/strong> in its October Bank Lending Survey, with mortgage demand falling sharply as interest rates rise.<\/li>\n<li><strong>Russian President Vladimir Putin is planning talks<\/strong> with the leaders of Finland and Norway to discuss potential peace proposals for the conflict in Ukraine.<\/li>\n<\/ul>\n<h2>Energy Markets and Geopolitical Tensions<\/h2>\n<p><a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">Oil prices<\/a> edged higher on Tuesday following reports of an attack on Saudi Arabia&#39;s <strong>Ras Tanura<\/strong> terminal, the kingdom&#39;s largest oil export hub. While state producer <strong>Saudi Aramco<\/strong> (<a href=\"\/stock\/ARMCO\">ARMCO<\/a>) successfully contained the resulting blaze, the incident underscored persistent security risks in the Persian Gulf. <strong>Brent crude<\/strong> rose to <strong>$116.50<\/strong>, while <strong>West Texas Intermediate (WTI)<\/strong> climbed 0.7% to <strong>$102.50<\/strong> as markets weighed the potential for supply disruptions.<\/p>\n<p>In a parallel diplomatic development, <strong>Iranian President Masoud Pezeshkian<\/strong> and the <strong>Emir of Qatar<\/strong> met in Moscow on the sidelines of the <strong>Gas Exporting Countries Forum (GECF)<\/strong>. The leaders discussed strategic energy cooperation and the management of shared gas fields. Meanwhile, the Kremlin confirmed that <strong>President Vladimir Putin<\/strong> is preparing for phone consultations with <strong>Finland&#39;s President Alexander Stubb<\/strong> and <strong>Norway&#39;s Prime Minister Jonas Gahr St\u00f8re<\/strong> regarding a new peace &quot;counteroffer&quot; for Ukraine.<\/p>\n<h2>Automotive Sector Facing Headwinds<\/h2>\n<p><strong>Mercedes-Benz Group AG<\/strong> (<a href=\"\/stock\/MBG\">MBG<\/a>) issued a significant profit warning, cutting its full-year 2026 adjusted return on sales forecast for its cars division. The company cited an <em>&quot;increasingly challenging&quot;<\/em> market environment in <strong>China<\/strong> and anticipated higher material costs in the fourth quarter. Following the announcement, shares of <strong>Mercedes-Benz<\/strong> tumbled 5%, dragging down peers <strong>BMW<\/strong> (<a href=\"\/stock\/BMW\">BMW<\/a>), <strong>Volkswagen<\/strong> (<a href=\"\/stock\/VOW3\">VOW3<\/a>), and <strong>Stellantis<\/strong> (<a href=\"\/stock\/STLA\">STLA<\/a>).<\/p>\n<p>The automaker&#39;s preliminary third-quarter results showed a group <strong>EBIT of \u20ac1.77 billion<\/strong>, slightly beating consensus estimates of \u20ac1.6 billion. However, <strong>industrial free cash flow<\/strong> came in at <strong>\u20ac172 million<\/strong>, significantly missing the expected <strong>\u20ac422 million<\/strong>. The company now expects its industrial free cash flow for the full year to be significantly below prior-year levels.<\/p>\n<h2>European Economic Indicators and Israeli Elections<\/h2>\n<p>The <strong>European Central Bank (ECB)<\/strong> released its October 2026 Bank Lending Survey, revealing that euro area banks have further tightened credit standards for both firms and households. <strong>Mortgage demand<\/strong> saw a net 27% decrease in the third quarter, a much sharper decline than the 12% drop lenders had initially anticipated. Despite the tightening, <strong>M3 money supply<\/strong> grew by <strong>3.5%<\/strong> in September, slightly exceeding analyst forecasts of 3.4%.<\/p>\n<p>In the Middle East, <strong>Israel<\/strong> is holding its first general election since the conclusion of its most recent regional conflicts. Turnout reached <strong>16.68%<\/strong> by mid-morning, marking the most active start to an election day in over four decades. Analysts view the high participation rate as a reflection of the &quot;fate-defining&quot; nature of the vote, which serves as a referendum on the current government&#39;s handling of national security and judicial reforms.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Saudi Arabia contained a fire at the Ras Tanura oil hub following a Houthi missile and drone attack, 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