Most Gulf bourses end lower on Middle East conflict despite diplomatic hopes

Gulf stock markets closed lower on Monday as escalating regional conflict overshadowed cautious optimism over diplomatic progress at UN meetings. The decline came despite some optimism following China's intervention urging Tehran to restrain Houthi attacks, a move brokered through direct appeal from Riyadh. Major energy markets remained volatile due to recent threats between Washington and Tehran, compounded by Yemen's Houthis targeting Riyadh and Saudi Aramco’s Yanbu energy hub with drone and missile attacks.

Dubai's main share index showed a slight gain, buoyed by a 1.3% rise in top lender Emirates NBD. However, Saudi Arabia's benchmark index fell 0.6%, hurt by a sharp decline in ACWA Power Co and oil giant Saudi Aramco. Qatar's benchmark ended marginally higher as the country launches a domestic investment division to offset financial strain due to conflict disrupting its LNG exports. Egypt's blue-chip index also slipped 0.7% amid these developments.