Stock markets in the Middle East suffered sharp losses on Monday, with Saudi shares falling the most, as the rapid spread of coronavirus cases outside China darkened the outlook for world growth.

Brent crude was down $2.37, or 4.1%, to $56.13 a barrel by 1145 GMT. 

Global shares also extended losses as worries about the impact of the virus grew, with the number of infections jumping in Iran, Italy and South Korea.

Saudi Arabia's benchmark index declined 3%, its biggest fall since May 13 last year when two of its oil tankers were attacked off the coast of the United Arab Emirates.

Al Rajhi Bank slid 3.7% and petrochemical maker Saudi Basic Industries 2010.SE dived 4%. Oil giant Saudi Aramco was down 1.9%, at 33.4 riyals.

Lower oil prices generally narrow spreads and thus pose a negative for petrochemicals, but the sector is also directly impacted by the virus as China is a major consumer, said Vrajesh Bhandari, senior portfolio manager at Al Mal Capital.

"Banks are facing their own set of challenges from compressing net interest margins and rising cost of risk."

Qatar's index eased 1.3% with all its stocks slipping into the red. Lender Masraf Al Rayan lost 2% and Qatar National Bank was down 1%.

The Abu Dhabi index slid 2.2% as the country's largest lender First Abu Dhabi Bank sank 4.5%, reaching its lowest since May.

In Dubai, the index dropped 0.8% with Emaar Properties shedding 2.6%, while budget airliner Air Arabia was down 2.6%.

In Kuwait, the bourse retreated 1.7% while in neighbouring Bahrain the index was down 0.5%. On Monday, the two countries reported their first new coronavirus cases - all people who had been in Iran.

Outside the Gulf, Egypt's index fell 1.7%, dragged down by a 1.1% fall in Commercial International Bank and a 10% slump in Heliopolis Co, after it received no offers for a partial management buyout. 

(Reporting by Ateeq Shariff in Bengaluru Editing by Mark Heinrich) ((AteeqUr.Shariff@thomsonreuters.com; +918067497129;))