Most Gulf bourses retreat on US-Iran hostilities
- Dubai’s main share index declined 1.3%
Most Gulf equity markets closed lower on Tuesday after Washington reinstated its naval blockade against Iran and both nations intensified attacks around the Strait of Hormuz, stoking renewed concerns over global energy supply disruptions.
The U.S. military launched strikes against Iran for a third straight night on Monday, while President Donald Trump restored a blockade on Iranian shipping and suggested imposing a 20% fee for protecting the Strait of Hormuz.
Dubai’s main share index declined 1.3%, with top lender Emirates NBD gaining 2.7%.
GCC equities remained under pressure as rising geopolitical tensions drove investors toward caution. Security concerns around maritime trade deepened after fresh tanker incidents and the U.S. decision to reinstate its blockade against Iran, heightening uncertainty over shipping through the Strait of Hormuz, said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group.
Focus is also turning to key global catalysts, including U.S. inflation data and Federal Reserve Chair Kevin Warsh’s testimony, which could shape expectations for U.S. monetary policy and global risk appetite, with potential implications for GCC markets, added Takieddine.
In Abu Dhabi, the index lost 0.5%.
The United Arab Emirates Ministry of Defence said on Monday two Emirati tankers were struck by Iranian cruise missiles in the southern lane of the Strait of Hormuz, within Omani territorial waters, killing one Indian crew member and injuring eight others.
Shipping data released Monday also showed that tanker traffic through the Strait of Hormuz over the previous day had dropped to its lowest level in two months.
Saudi Arabia’s benchmark index dropped 0.8%, dragged down by a 1.7% fall in Al Rajhi Bank.
Meanwhile, Yemen’s Houthi movement fired missiles at Saudi Arabia after accusing the kingdom of bombing an airport under its control on Monday.
Oil major Saudi Aramco advanced 1.4% as oil prices rose.
Brent crude futures were up $2.89, or 3.47%, at $86.19 per barrel at 1158 GMT.
Outside the Gulf, Egypt’s blue-chip index lost 0.6%, hit by a 1.4% fall in Commercial International Bank .
| Saudi Arabia | dropped 0.8% to 10,716 |
|---|---|
| Abu Dhabi | fell 0.5% to 9,852 |
| Dubai | declined 1.3% to 5,891 |
| Egypt | lost 0.6% to 52,299 |
| Bahrain | down 0.5% to 1,990 |
| Oman | eased 0.2% to 7,604 |
| Kuwait | inched down 0.1% to 9,079 |
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