Gulf bourses slide as Hormuz tensions and houthi strikes rattle traders

Gulf stock markets experienced a decline on Sunday, as traders grappled with concerns over the outcome of the ongoing tension in the Strait of Hormuz and the escalating Houthi attacks on Saudi Arabia. The Iranian navy announced that a mine strike in the Strait had set three oil tankers ablaze, causing significant damage. In response, the Saudi-led coalition claimed to have intercepted two ballistic missiles and three drones aimed at Riyadh, the capital city, along with three drones over the kingdom's oil-rich Eastern Province.

The Houthi attacks on Saudi airports, seaports, and energy installations have intensified, leading Riyadh to escalate its air campaign against Houthi targets in Yemen. In Qatar, the stock market index fell by 1.8%, with all its components performing poorly, including the country's largest lender, Qatar National Bank, which saw a 2.3% decrease.

A significant development in the Gulf has been the cancellation of a long-standing LNG contract between Qatar and Poland's Orlen, a first since the conflict began, potentially saving Poland up to $2 billion.

Recent developments have seen Turkey and Qatar form a mutual defense pact to strengthen joint security across the region. They pledged a united front against any foreign armed attack on either country following talks between their leaders. Outside the Gulf, Egypt's blue-chip index managed to increase by 0.3%, closing at 52,187 points. The Kuwaiti dinar and the Saudi riyal both showed slight declines, ending the day at 7,347 and 8,991, respectively.