Most Gulf Markets Decline Amid Escalating Iran-Israel Conflict
Most stock markets across the Gulf closed lower on Tuesday as rising geopolitical tensions between Iran and Israel entered their fifth day, prompting investor caution and raising fears of a broader regional conflict in the Middle East.
U.S. President Donald Trump, who left the G7 summit in Canada early on Monday evening, urged Iranian citizens to evacuate Tehran. Iranian media reported explosions and heavy anti-aircraft fire over the capital, while air raid sirens sounded in Tel Aviv in response to Iranian missile attacks.
In Saudi Arabia, the benchmark index fell 1.4%, weighed down by a 1% drop in Al Rajhi Bank shares and a 1.3% decline in oil giant Saudi Aramco.
Dubai’s main index also closed 0.6% lower, pressured by a 1.2% fall in Emirates NBD Bank shares.
Investor sentiment remains cautious ahead of the U.S. Federal Reserve’s policy meeting, which begins later today. The Fed is expected to announce its rate decision on Wednesday, with markets pricing in two rate cuts by the end of the year.
The Abu Dhabi index slipped 0.5%.
Despite the conflict, oil prices climbed, though major oil and gas infrastructure and supply chains have so far remained largely unaffected.
In Qatar, the benchmark index declined 0.5%, with Qatar National Bank shares down 0.8%.
Conversely, Bahrain’s main index gained 0.3%, closing at 1,910 points, while Kuwait’s benchmark advanced 0.6% to 8,680 points.
Oman’s main index ended the day down 0.3% at 4,520 points.
Outside the Gulf region, Egypt’s blue-chip index dropped 1%, pressured by a 4.7% loss in EFG Holding shares.
