Gulf bourses subdued as regional worries weigh

Major stock markets closed lower on Monday as tensions in the Middle East kept investors on edge, with a tanker blast in the Strait of Hormuz and uncertainty over the waterway’s reopening adding to the caution.

An oil tanker caught fire and exploded after striking a naval mine in the southern part of the strait, Iran’s Islamic Revolutionary Guard Corps navy said on Sunday, according to Iranian media.

Separately, Foreign Minister Abbas Araqchi told Iranian media that Tehran’s offer to the United States to reopen the strait within seven days was still on the table.

Brent crude futures fell $1.45, or 1.32%, to $108.41 a barrel by 1152 GMT after settling at their highest since May 19 on Friday, as investors took profits after US President Donald Trump waived sanctions and tariffs on Russia, a move that may lead to more Russian fuel exports.

Saudi Arabia’s benchmark index slipped 0.7%, hit by a 1% drop in Al Rajhi Bank and a 1.6% decline in the country’s biggest lender by assets, Saudi National Bank.

Dubai’s main share index eased 0.3%, with toll operator Salik Company losing 1.2%.

Dubai Investments plans to float a 20% stake in subsidiary DIP Holding, owner of the Dubai Investments Park real estate business, in the UAE’s first initial public offering this year and one of only a few in the Gulf amid the Iran war. Dubai Investments’ shares gave up early gains to finish flat.

Stalled regional talks are fueling doubts about de-escalation and may keep risk appetite subdued near term, while tanker incidents in the Strait of Hormuz weigh on sentiment.

Solid domestic fundamentals, however, could limit further downside, said Mahmoud Mashal, senior market analyst, VT Markets Dubai.

In Abu Dhabi, the index lost 0.3%, while the Qatari index concluded flat, at its lowest in more than six years.

Qatari Energy Minister Saad al-Kaabi met Iran’s acting oil minister, Hamid Bovard, on Monday to discuss energy cooperation, a Qatari statement said.

Outside the Gulf, Egypt’s blue-chip index gained 0.4%, a day after falling 2.6%.

Egypt stands ready to support Saudi Arabia’s defense of its security and stability, its presidency said on Sunday, as Iran-allied Houthis step up attacks on the kingdom and raise the stakes in the Middle East war.