Most Gulf stock markets experienced declines in early trading on Sunday, driven by growing fears of a wider conflict involving Iran. Market sentiment was negatively impacted after Yemen's Houthis launched their first attacks on Israel since the conflict began, and the United States deployed additional forces to the Middle East.
The Qatari index saw a significant drop of 1.1%, with Qatar National Bank, the Gulf's largest lender by assets, falling by 1.3%. Similarly, the Kuwait bourse eased by 0.4%, and the Bahrain market dipped by 0.1%. These declines reflect investor caution amid escalating regional tensions. Brent crude futures rose by $4.56, or 4.2 percent, to $112.57 a barrel on Friday, reflecting scepticism over prospects for a ceasefire in the month-old Iran war.
bucking the trend, Saudi Arabia's benchmark index managed a 0.4% gain. This was supported by a 0.4% increase for Al Rajhi Bank and a 0.6% advance for oil major Saudi Aramco. Bloomberg News reported on Saturday that Saudi Arabia's East-West pipeline, which bypasses the Strait of Hormuz, is pumping oil at its full capacity of 7 million barrels per day.
The ongoing conflict and potential for escalation continue to cast a shadow over the region's financial markets. Investors are closely monitoring developments, with market volatility expected to persist as geopolitical uncertainties remain unresolved. The situation is further complicated by the closure of the Strait of Hormuz, a critical chokepoint for global oil supplies.
