Gulf shares slip on report of potential US military action against Iran

BENGALURU: Most Gulf stock markets fell on Thursday after a report that the United States was considering military strikes on Iran to try to break a deadlock in peace talks.

U.S. President Donald Trump will be briefed on Thursday on plans for strikes on Iran, U.S.-based digital news company Axios reported late on Wednesday.

The Abu Dhabi benchmark index dropped 1.2%, snapping a four-session winning streak, with nearly all sectors in negative territory. Losses were led by real estate and utilities stocks.

Aldar Properties fell 4.5%, while NMDC Group declined 3.5% after reporting a 50% drop in first-quarter net profit, as higher logistics, insurance and fuel costs, along with project delays linked to regional geopolitical tensions, weighed on earnings.

Broad-based losses in Dubai

Dubai’s benchmark stock index slid 1.6%, dragged down by broad-based losses. Blue-chip developer Emaar Properties dropped 4.4%, while toll operator Salik Company fell 2.8%.

“Markets in UAE recorded a correction as geopolitical concerns increased. Over the long term, the country could benefit from its capacity to increase oil production after leaving OPEC if disruptions in the region abate,” said George Pavel, general manager at Naga.com Middle East.

The Qatari benchmark index declined 1.2%, with almost all stocks trading lower.

Qatar National Bank , the region’s largest lender, shed 0.9%, while petrochemicals conglomerate Industries Qatar dropped 1.7% after reporting a decline in first-quarter profit as sales volumes weakened, largely due to lower production and shipping constraints amid continued regional uncertainty.

Saudi Arabia’s benchmark stock index eased 0.5%, pressured by losses in communications, real estate and financial stocks.

Saudi National Bank, the kingdom’s largest lender by assets, fell 1.6%, while Al Majed For Oud slumped 10%, its steepest percentage decline since listing in 2024, after the perfume maker posted a 9% drop in first-quarter net profit.

However, gains in IT, materials and energy stocks limited losses on the Saudi index. Oil giant Saudi Aramco rose 0.7%, while National Shipping Company of Saudi Arabia, or Bahri, added 2.7% after the shipping firm reported a 303% jump in first-quarter net profit.

Outside the Gulf, Egypt’s blue-chip index fell 1.1%, weighed down by a 3.7% drop in Fawry for Banking Technology and a 2.2% decline in Commercial International Bank .