DUBAI: Most Gulf stock markets ended lower on Sunday as fears of a broader Iran-linked conflict weighed on investor sentiment after Yemen’s Houthis launched their first attacks on Israel since the conflict began and the US deployed additional forces to the Middle East.
The Washington Post reported on Saturday that US officials said the Pentagon was making preparations for a potential multi-week ground operation in Iran, though it remained uncertain whether President Donald Trump would authorise the deployment of ground forces.
Saudi Arabia’s benchmark index gave up early gains to finish 0.1 percent down, with Saudi National Bank losing 1.9 percent.
Meanwhile, the kingdom’s East-West pipeline, which circumvents the Strait of Hormuz, is pumping oil at full capacity of 7 million barrels per day, Bloomberg News reported on Saturday, citing a person familiar with the matter.
Brent crude futures rose by USD4.56, or 4.2 percent, to USD112.57 a barrel on Friday, reflecting scepticism over prospects for a ceasefire in the month-old Iran war.
The Qatari index declined 1 percent as Qatar National Bank, the Gulf’s biggest lender by assets, retreated by 1.3 percent.
The Kuwait bourse dropped 0.7 percent and the Bahrain market dipped by 0.1 percent.
Bucking the trend, Oman’s index gained 0.8 percent.
Outside the Gulf, Egypt’s blue-chip index fell 1.3 percent, with Commercial International Bank losing 1.1 percent.
Egypt will slow down large state projects that involve high fuel and diesel consumption for at least two months while fuel allocations for all government vehicles will be cut by 30 percent, Prime Minister Mostafa Madbouly said on Saturday.
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