DUBAI: Most stock markets in the Gulf ended lower on Sunday, dragged down by escalating conflict in the region and weakening oil prices.
Israel struck what it said were Hezbollah arms facilities in southern Beirut on Saturday after the Lebanese armed group fired rockets into northern Israel and a spokesman said a drone was launched at Prime Minister Benjamin Netanyahu’s holiday home.
Promises by Israel and its enemies Hamas and Hezbollah to keep fighting have chilled hopes that the death of Hamas leader Yahya Sinwar on Wednesday might lead to truces in Gaza and Lebanon and prevent further escalation in the Middle East.
Saudi Arabia’s benchmark dropped 0.2%, hit by a 1.8% fall in ACWA Power Company and a 0.7% decrease in the country’s biggest lender Saudi National Bank.
Oil - a catalyst for the Gulf’s financial markets - fell on Friday, declining more than 7% on the week after data showed China’s economic growth slowed and investors digested a mixed Middle East outlook.
Lower prices and disruptions to crude exports impact fiscal balances in countries reliant on oil income.
In Qatar, the index retreated 1.1%, as all its constituents were in negative territory including the Gulf’s biggest lender Qatar National Bank, which was down 1.5%.
Outside the Gulf, Egypt’s blue-chip index declined 2%, weighed down by a 3.2% slide in Commercial International Bank.
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