Most Gulf bourses end lower as Hormuz attacks hit wartime peak

Gulf stock markets closed lower on Thursday as attacks on tankers in the Strait of Hormuz reached a wartime high, while Saudi airports faced deadly strikes, intensifying regional conflict. The latest attack occurred on Wednesday when a tanker was hit 51 nautical miles north of Qatar’s Madinat ash Shamal, causing casualties according to UK Maritime Trade Operations.

As Gulf producers aimed to export more, Saudi Arabia's benchmark index dropped 1.6% for a sixth consecutive week, marking its biggest one-day decline since March. Key financial institutions like Saudi National Bank suffered losses, with the largest lender down 3.1%. Shipping traffic to the Strait of Hormuz fell to its lowest level in over two months, despite oil exports recovering.

The US response to reopening the strait within seven days remains under review in Tehran. The violence extended beyond the sea, with three fatalities reported in attacks on Saudi airports and heightened fighting in Yemen. Abu Dhabi's index declined 1.6%, while Dubai's main share index fell 1.7%. In Abu Dhabi, the index closed at 9,801, Dubai at 5,799, and Qatar at 9,006, all experiencing declines.

The regional tensions and stalled diplomacy cast doubts on US-Iran negotiations, as warned by market analyst Mahmoud Mashal of VT Markets in Dubai.