UAE markets decline after warning on regional air travel

UAE stock markets experienced a slight decline on Friday, following an adviser to Iran's leader cautioning about potential disruptions to regional air travel and airport services. According to Nournews, Iranian adviser Mokhber stated that if Iran cannot have flights and access airport services, then none in the region should either.

Meanwhile, all four Iraqi airports handling routes to and from Iran — Baghdad, Najaf, Erbil, and Sulaimaniya — have suspended flights due to the advisory. Abu Dhabi's benchmark index dropped 0.1%, influenced by a 4.8% decline in National Bank of Fujairah and a 1% decrease in Abu Dhabi National Hotel. Conversely, energy shares saw an increase due to the expectation of enhanced Middle East energy supplies.

Adnoc Gas rose by 0.3%, and Adnoc Drilling Company gained 0.4%. Approximately 60 commercial vessels passed through the Strait of Hormuz on Wednesday, the highest daily volume of crude oil since early July, despite the ongoing conflict between the US and Iran, according to a US official speaking anonymously to Reuters. Despite this, Dubai's main index saw a marginal decline of 0.05%, impacted by a 0.7% drop in toll operator Salik Company and a 2.6% decline in food delivery platform Talabat Holding.

Oil prices experienced a decline of over 1% on Friday, as markets weighed the potential for a truce between the US and Iran against concerns that escalating attacks on Saudi Arabia by Houthi fighters might disrupt supply from the vital Middle Eastern producer. Brent crude dropped 1.5% to $105 a barrel by 11:41 GMT.