Most Gulf markets fall as regional risks escalate; Saudi flat on supply-reassurance reports

Across the Gulf, markets experienced a decline on Wednesday due to growing concerns over regional instability. Saudi Arabia's stock exchange remained unchanged as reports of additional oil shipments via Oman helped alleviate fears of potential Middle East supply disruptions. The kingdom's military conducted airstrikes in Yemen, while the Houthis retaliated with drone and missile attacks on Saudi cities.

Riyadh claimed to have shot down a Houthi drone near Mecca, but the Houthis denied targeting the holy city, labeling the claim as propaganda.

Saudi Arabia's benchmark index closed flat, with Saudi Aramco increasing by 0.6%. The country is providing extra crude shipments to Asian refiners via ship-to-ship transfers off Oman's Sohar port after a key pipeline was damaged by Houthi drone strikes. The number of vessels passing through the Strait of Hormuz remained low, with only four recorded on Tuesday compared to seven the previous day.

In contrast, Qatar's index fell 1.4%, while all its constituents were down, including Qatar Islamic Bank, which dropped 2.4%. Abu Dhabi's index edged down 0.2%. Dubai's benchmark index rose 0.7%, with most sectors advancing. Emaar Properties, a major developer, gained 3.4% following the approval of a one-time special dividend of AED 4.4 billion ($1.2 billion), or AED 0.50 per share.

The Federal Reserve's two-day policy meeting concluded on Wednesday, with traders betting on a 94.5% chance of a rate hike, up from 33.1% a month ago.

Outside the Gulf, Egypt's blue-chip index declined 0.2%. Saudi Arabia's index remained steady at 10,780, while Abu Dhabi eased to 10,114, Dubai dropped to 10,114, Qatar fell to 9,638, Egypt dropped to 54,823, Bahrain remained flat at 1,930, Oman declined to 7,550, and Kuwait slipped 0.1% to 9,284.