Saudi stocks slip after attack on Aramco building; Gulf markets mixed

Major Gulf stock markets experienced mixed trading on Wednesday, with Saudi shares declining in the wake of an attack on a Saudi Aramco site that heightened fears over the intensifying conflict between the kingdom and Yemen's Houthis. The Saudi benchmark index slipped 0.7%, following a 1.3% drop in Saudi National Bank, the nation's largest lender by assets, while Aramco fell 0.5%.

The Energy Ministry reported an administrative building of the state oil company in the eastern city of Dhahran was targeted, resulting in a minor fire, amid escalating hostilities between the kingdom and the Iran-aligned group. In recent days, the Houthis have launched a series of missile and drone strikes on Saudi Arabia in response to Riyadh's backing of Yemeni government forces, including an attack on the capital's international airport that killed 13 people and caused damage to 15 homes.

Additionally, Qatar's index dropped 0.4%, primarily driven by a 1.4% decline in petrochemical firm Industries Qatar. Tensions in the region further heightened as two Iranian officials disclosed to Reuters that Tehran is employing novel strategies to strike ships navigating the Strait of Hormuz, aiming to maintain elevated oil prices and sway the US midterm elections.

In contrast, the UAE's main share index saw a modest rise of 0.1%, buoyed by a 1.4% increase in top lender Emirates NBD, while Abu Dhabi's index climbed 0.3%.