Gulf equities mixed amid US-Iran flare-ups

Gulf stock markets were mixed on Monday as escalating U.S.-Iran tensions and fresh attacks on shipping in the region weighed on investor sentiment.

After a weekend of tit-for-tat maritime strikes, Iran warned on Monday that regional energy infrastructure remained “sprawling, accessible, and exposed” to retaliation against U.S. attacks.

Saudi Arabia’s benchmark index fell 0.4%, dragged down by a 0.5% decline in Al Rajhi Bank and a 0.2% drop in oil major Saudi Aramco.

Adding to market concerns, the Financial Times reported that Aramco’s Jazan refinery was attacked on Monday, with damage assessments underway.

Among other decliners, Saudi Ground Services Co tumbled 7%, making it the index’s worst performer, after airliner flynas gave notice it would terminate its ground handling agreement from March 2027.

Yanbu National Petrochemical Co retreated 4.1% as the stock traded ex-dividend.

Dubai’s main share index rose 0.8%, helped by a 1.3% gain in blue-chip developer Emaar Properties .

Abu Dhabi’s index ended little changed.

Gulf equities are likely to remain sensitive to developments in the Strait of Hormuz, including shipping traffic and changes to maritime corridors, said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group.

“While de-escalation efforts could cushion the downside, an unclear diplomatic timeline means caution will prevail,” he said.

Highlighting friction over shipping routes, UAE presidential adviser Anwar Gargash said on Monday that the country’s energy exports would not be held hostage, warning that rebuilding trust with Iran could take decades.

The Qatari index rose 0.5%.

Outside the Gulf, Egypt’s blue-chip index dipped 0.1%, with Commercial International Bank Egypt losing 1.4%.