Most Gulf bourses ease amid escalating US-Iran hostilities
Most Gulf stock markets closed lower on Thursday, as escalating hostilities between the United States and Iran fuelled concerns about potential disruptions across vital regional energy corridors. The decline followed the fiercest maritime confrontation of the six-month conflict. Iran struck 10 vessels near the Strait of Hormuz after the U.S. sank five Iranian tankers. The attacks prompted U.S.…
Most Gulf stock markets experienced a decline on Thursday, as escalating tensions between the United States and Iran heightened worries about potential interruptions in crucial energy routes. This downturn followed the most intense maritime clash of the six-month conflict, where Iran targeted ten vessels near the Strait of Hormuz in retaliation for the U.S. sinking of five Iranian tankers.
U.S. President Donald Trump vowed to retaliate against Iran’s strategic targets, including "Pickaxe Mountain." These developments heightened fears about shipping through the Strait of Hormuz, a critical energy-trade bottleneck, while Houthis' strikes on Saudi Arabia increased risks to alternative export paths through the Red Sea.
Houthis launched ballistic missiles and drones at several Saudi cities on Wednesday, marking their second consecutive day of attacks. Saudi Arabia's main index slipped 0.1%, dragged down by a 1.1% decline in Saudi Arabian Mining Company. Meanwhile, Saudi Aramco saw a 0.4% rise. Brent crude futures climbed $3.58, or 3.51%, to $104.79 a barrel.
Dubai's main share index fell 0.4%, with a 0.7% drop in developer Emaar Properties. Analyst George Pavel from Naga.com Middle East attributed the cautious sentiment among GCC stock markets to Iran's rhetoric, disrupted shipping in the Strait of Hormuz, and ongoing attacks on tankers, all of which are fueling concerns about a prolonged conflict, compounded by the uncertain progress of Oman-Iran negotiations.
In Abu Dhabi, the index edged up by 0.1%, while Qatar's index fell by 0.3%, and the Gulf's largest lender, Qatar National Bank, retreated 1.4%. Outside the Gulf, Egypt's blue-chip index dropped 0.4%, with Commercial International Bank falling 0.7%. Saudi Arabia's benchmark index gained 0.1% to 11,007 points, Dubai's index declined to 5,904 points, Qatar's index fell 0.3% to 9,824 points, and Egypt's index decreased by 0.4% to 56,280 points. Bahrain and Oman, however, remained stable at 1,930 and 7,648 points respectively.
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