DUBAI: Most stock markets in the Gulf ended lower on Monday as renewed conflict in the Middle East weighed on investor sentiment. Explosions were reported early on Monday in Tehran, Tabriz and Isfahan, according to local media, casting fresh doubt over hopes for a near-term end to the broader conflict.
The developments came after Iran fired a wave of missiles at Israeli targets on Sunday in retaliation for an attack near Beirut.
Despite the latest escalation, US President Donald Trump said a deal to end the war remained within reach, with media reports saying he had urged Israeli Prime Minister Benjamin Netanyahu to refrain from further strikes.
On Monday, Iran’s armed forces unified command said Tehran had concluded its military operations against Israel, while warning that any continued Israeli attacks on Lebanon would provoke a harsher response.
Dubai’s main share index dropped 0.6 percent, hit by a 1.5 percent slide in top lender Emirates NBD and a 0.9 percent decrease in blue-chip developer Emaar Properties.
Iran has long maintained that any agreement with Washington would depend on a ceasefire in Lebanon, where Israel launched an invasion in March against Iran-backed Hezbollah fighters after cross-border rocket and drone attacks carried out in support of Tehran.
However, Israel struck the Beirut area again earlier on Sunday, marking its first attack there since the United States unveiled a truce proposal for Lebanon last week.
In Abu Dhabi, the index retreated 1.4 percent, with conglomerate International Holding losing 1.4 percent and a 0.1 percent decrease in Aldar Properties.
The Qatari index slid 2.1 percent, with petrochemical maker Industries Qatar dropping 3.8 percent.
Renewed unrest in the region may keep weighing on risk appetite and prompt investors to remain cautious as they watch for further developments.
While expectations of diplomatic progress may help contain losses to some extent, escalating tensions could continue to undermine that optimism, said George Pavel, general manager at Naga.com Middle East.
Saudi Arabia’s benchmark index gained 0.4 percent, with the country’s biggest lender by assets Saudi National Bank gaining 1.5 percent.
Oil major Saudi Aramco was up 0.6 percent as oil prices rose, with Brent crude futures up USD1.01, or 1.2 percent at USD94.19 a barrel as of 1151 GMT.
Outside the Gulf, Egypt’s blue-chip index lost 0.5 percent.
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