DUBAI: Most Gulf equities erased early advances to finish lower on Wednesday, led by a sharp decline in Dubai, as investors stayed cautious over inflation and growth risks stemming from the US-Israeli war against Iran.
The US and Israel launched what the Pentagon and sources in Iran described as the most intense airstrikes of the war, even as global markets continued to bet that President Donald Trump would seek to bring the conflict to an end soon.
The war has effectively shut the Strait of Hormuz — a key route for roughly one-fifth of global oil and liquefied natural gas flows — forcing producers to halt output as storage fills and sending energy prices sharply higher.
Dubai’s main index dropped 2.4 percent, hit by a 4.7 percent slide in blue-chip developer Emaar Properties and a 4.9 percent decline in top lender Emirates NBD .
However, Air Arabia ended 0.7 percent higher. The budget airline was set to snap a five-session decline, having lost more than 20 percent in the preceding five trading days.
Two drones fell near Dubai’s main airport and Bahrain evacuated some aircraft on Wednesday, as attacks on Gulf infrastructure kept disrupting air traffic and hindered attempts to restore flights on the 12th day of the war.
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