Gulf markets mixed; Saudi stocks hardest hit on Aramco attack

Gulf stock markets experienced mixed results on Wednesday, with Saudi shares suffering the most significant losses following an attack on the Saudi Aramco headquarters, deepening concerns of an escalating conflict between Saudi Arabia and Yemen's Houthis. The Houthi group vowed to continue targeting Saudi airports and oil facilities following the attack, which sources reported caused extensive damage to the headquarters of the oil giant.

Saudi Arabia's benchmark index fell 1.7%, driven by declines in the country's largest lenders, Saudi National Bank and Al Rajhi Bank. Aramco shares dropped 1.6%. The state oil company's administrative building in the eastern city of Dhahran was targeted, leading to a limited fire. The conflict between Saudi Arabia and the Iran-aligned Houthi group has escalated, with the Houthis launching a barrage of ballistic missiles and drones against Saudi Arabia in retaliation for Riyadh's support of Yemeni government forces.

The capital's international airport has been hit four times, including a strike on Saturday that killed 13 people. The latest incident saw debris from two intercepted missiles fall on Riyadh, injuring four people and causing limited damage to 15 homes. Qatar's index fell 0.7%, mainly due to a 2% drop in petrochemical maker Industries Qatar.

Geopolitical developments continued to dominate regional markets, with investors remaining cautious due to ongoing disruptions in the Strait of Hormuz and hopes for progress in talks providing some stability. Regional tensions have further increased as Iran reportedly uses new tactics to target ships sailing through the Strait of Hormuz, aiming to keep oil prices high and influence the US midterm elections.

The UAE's main share index rose 0.6%, driven by a 2.8% gain in top lender Emirates NBD, while Abu Dhabi's index increased by 0.4%. Outside the Gulf, Egypt's blue-chip index rebounded, gaining 0.4% after a six-session losing streak. Saudi Arabia declined 1.7% to close at 10,139, while Abu Dhabi added 0.4% to 9,834, and Dubai increased by 0.6% to 5,893.

Qatar dropped 0.7% to 8,931, with Egypt maintaining a slight gain at 51,493, Bahrain easing by 0.1% to 1,880, Oman rising by 0.4% to 7,758, and Kuwait falling 1.4% to 8,946.