Most Gulf markets in red on uncertainty over US policies

Most Gulf stock markets ended lower on Monday, weighed by a mix of geopolitical and policy worries — ranging from U.S.–NATO tensions over Greenland and uncertainty around tariffs to growing questions about the Federal Reserve’s independence.

Over the weekend, U.S. President Donald Trump warned he would slap a 100% tariff on Canada if it went ahead with a trade agreement with China.

He has also threatened to impose 200% tariffs on French wines and champagne, seemingly to pressure French President Emmanuel Macron to sign on to his Board of Peace initiative.

Saudi Arabia’s benchmark index reversed early losses to finish flat.

The Saudi stock market’s recent rebound lost steam, with investors turning cautious ahead of additional fourth-quarter earnings releases and ongoing regional geopolitical tensions, said Daniel Takieddine, co-founder and CEO, Sky Links Capital Group.

Crude prices - a catalyst for the Gulf’s financial markets - edged higher on Monday after climbing more than 2% in the previous session, as output disruptions in major U.S. crude-producing regions and tensions between the U.S. and Iran boosted prices.

According to Takieddine, the uptick in oil prices remains shaky amid concerns about a possible oversupply in 2026, though a sustained rise in crude could ultimately lift market sentiment.

In Abu Dhabi, the index lost 0.2%.

U.S. President Donald Trump briefly calmed markets last week by walking back tariff threats and softening his rhetoric on possible military action involving Greenland. But fresh sanctions aimed at Iran have renewed investor concerns.

Dubai’s main share index declined 0.6%, dragged down by a 1% slide in blue-chip developer Emaar Properties and a 1.7% retreat in toll operator Salik Company .

The market’s underlying fundamentals remain strong and growth forecasts for the year are upbeat, indicating that the rally could regain traction if fourth-quarter earnings come in favorably, said Takieddine.

The Qatari benchmark, however, rose 1.2%, clawing back most of its losses from the previous session.

Outside the Gulf, Egypt’s blue-chip index advanced 1.4%, reaching a new record high.