Most Gulf stocks edge up amid caution over US-Iran standoff, Saudi energy strikes

Most Gulf markets ended slightly higher on Tuesday, though gains remained modest as escalating hostilities between Washington and Tehran kept traders on the sidelines amid fears of a prolonged standoff.

Tehran threatened the U.S. with “economic warfare” and claimed an advanced missile strike on American warships, intensifying a cycle of retaliation following recent cross-border attacks.

Saudi Arabia’s benchmark index reversed early losses to finish 0.1% higher, with Al Rajhi Bank gaining 0.3%. Oil major Saudi Aramco increased 0.8%.

Brent crude futures were up $1.63, or 1.68%, at $98.63 a barrel at 1201 GMT.

Operations at select energy facilities across Saudi Arabia were brought to a halt on Tuesday after Houthi strikes injured 73 people, marking what Saudi authorities condemned as a severe and dangerous escalation.

The flashpoint follows Saturday’s U.S. strikes on three Iranian tankers near the vital Kharg Island export hub, launched in retaliation for Revolutionary Guard attacks on American vessels.

Regional markets will hinge on developments in the Strait of Hormuz and signs of de-escalation, said Mahmoud Mashal, senior market analyst at VT Markets Dubai, adding that geopolitical strains could hurt sentiment while diplomatic gains would provide a lift.

The Qatari index advanced 0.7%, led by a 0.7% gain in the Gulf’s biggest lender Qatar National Bank .

Dubai’s main share index was up 0.3%, with top lender Emirates NBD rising 1.4%.

In Abu Dhabi, the index increased 0.5%.

Reflecting broader concerns over trade vulnerabilities, the United Arab Emirates is establishing backup export corridors to prevent its economy from being “held hostage” by the standoff, UAE presidential adviser Anwar Gargash noted on Monday.

Outside the Gulf, Egypt’s blue-chip index fell 0.8%, with Commercial International Bank declining 1.1%.