Most Gulf bourses in red on Houthi attack and Hormuz shipping slump

Most Gulf stock markets slid on Tuesday, with Saudi shares taking the biggest hit, amid fresh Houthi missile strikes and a plunge in shipping activity through the Strait of Hormuz, raising concerns that the conflict could intensify. Saudi Arabia's main index fell 0.9%, dragged down by a 1.3% tumble in Saudi Arabian Mining and a 0.6% decline in oil giant Saudi Aramco.

Yemen's Houthis claimed responsibility for bombing the Khamis Mushait airbase in southern Saudi Arabia, targeting hangars, radar systems, runways, and ammunition storages. The group said the assault was in retaliation for Saudi-led strikes in Yemen, as Riyadh assessed its response to the Houthis' swift advances. The flare-up has fueled worries that the conflict could spread across the Middle East, endangering energy infrastructure and global oil supplies.

Gulf Arab states have called off planned talks with Iran, deepening diplomatic tensions after Saudi Arabia accused Iran-backed forces in Iraq of a string of attacks. Friday's assaults on Saudi Arabia, blamed by Riyadh on Iran-aligned fighters in Iraq, crippled the kingdom's East-West pipeline, a crucial export route that bypasses the blockaded Strait of Hormuz.

Shipping through the strait has slowed considerably since the Iran war commenced on February 28, amplifying apprehensions about supply interruptions and the economic repercussions of a wider regional clash. Dubai's primary share index slipped 0.8%, with blue-chip developer Emaar Properties plunging 2.1%. The previous day, the developer surged over 6% following its board's decision to convene on Wednesday to discuss boosting shareholder returns and capital allocation.

GCC equities faced pressure as geopolitical strains and stalled negotiations soured sentiment. Investors are monitoring a revised schedule for the postponed Gulf-Iran meeting, as the delay dampened hopes for a Strait of Hormuz reopening and regional calm, according to Mahmoud Mashal, senior market analyst at VT Markets Dubai. Abu Dhabi's index managed a modest gain of 0.2%.

In Qatar, the index slipped 0.5%, while the Gulf's largest lender, Qatar National Bank, dropped 0.7%. Outside the Gulf, Egypt's blue-chip index rose 0.2%. Saudi Arabia shed 0.9% to 10,782, Abu Dhabi climbed 0.2% to 10,136, Dubai fell 0.8% to 5,927, Qatar declined 0.5% to 9,774, Egypt rose 0.2% to 54,909, Bahrain stayed flat at 1,929, Oman slipped 0.2% to 7,615, and Kuwait fell 0.2% to 9,296.