Stock markets across the Gulf closed lower on Monday as escalating tensions linked to the conflict with Iran weighed on investor sentiment and heightened volatility across regional equities.
Major indexes across the region ended the session in negative territory amid growing concerns about the threat of disruption to energy infrastructure, shipping routes and trade flows if the conflict spreads further.
In the UAE, Dubai’s benchmark index closed 2.5 per cent lower, dragged down by a 4.9 per cent fall in shares of Emaar Properties and a 1.7 per cent decline in Emirates NBD.
Abu Dhabi’s benchmark index slipped 0.2 per cent, weighed down by a 3.5 per cent drop in Aldar Properties.
Elsewhere in the region, Qatar’s index closed down 1.2 per cent, Bahrain declined 1.8 per cent and Oman lost 0.7 per cent. Kuwait’s benchmark slipped 0.4 per cent, while Egypt’s market fell 1.6 per cent.
Saudi Arabia’s Tadawul index bucked the broader regional trend, rising 0.6 per cent, supported by a 1.1 per cent gain in Saudi National Bank shares, although oil giant Saudi Aramco edged 0.2 per cent lower.
Investor concerns intensified during Monday’s session as reports of military developments heightened fears of a broader regional escalation. Officials spoke of strikes on Iran’s Kharg Island oil export terminal, one of the country’s most important crude export hubs.
The warnings were followed by retaliatory drone attacks that struck the UAE’s Fujairah oil terminal earlier in the day, raising concerns about the security of critical energy infrastructure and key shipping lanes in the Gulf.
Also a fire broke out at Dubai International Airport (DXB) “resulting from impact to one of the fuel tanks” in what authorities earlier described as “a drone-related incident”.
Traders said the developments prompted a sell-off across regional equities as investors moved to reduce exposure to risk assets.
Shipping and insurance markets were also closely watching events on Monday, with some maritime operators reassessing the risks of vessels travelling through Gulf waters.
This was written with input from Reuters
