Gulf bourses slip as Iran-US escalation dents risk appetite
BENGALURU: The Dubai stock market led Gulf stocks lower on Monday as renewed military action between the U.S. and Iran near the Strait of Hormuz weighed on risk appetite. American forces struck two Iranian launchers on Larak Island in the Strait of Hormuz on Sunday, prompting Tehran to retaliate with attacks on U.S. forces stationed in Jordan. Iran also said it struck a tanker transiting through…
Dubai’s main stock exchange and Abu Dhabi’s benchmark index experienced declines on Monday as tensions between the U.S. and Iran escalated near the Strait of Hormuz. The American military targeted two Iranian launchers on Larak Island, prompting Iran to strike U.S. forces in Jordan and a tanker passing through the strategic waterway.
Dubai’s primary index fell 0.8%, with most of its components trading lower, while Abu Dhabi’s benchmark index slipped 0.4%. Key contributors to the declines included Abu Dhabi Islamic Bank, which fell 3.3%, and Aldar Properties, which dropped 1.7%. Some sectors in Qatar also saw negative performance, with the Qatar Fuel Company falling 6.7% and the Qatar National Bank losing 0.6%.
The broader Middle East economy faced challenges, with Saudi Arabia's index down 0.3% and a 7% contraction in Qatar's economy in the first quarter of 2026 due to reduced energy production. Analysts warned that further tensions could lead to further market pressure and overshadow ongoing diplomatic efforts.
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