Most Gulf bourses ease amid escalating US-Iran hostilities

Most Gulf stock markets closed lower on Thursday, as escalating hostilities between the United States and Iran fuelled concerns about potential disruptions across vital regional energy corridors.

The decline followed the fiercest maritime confrontation of the six-month conflict. Iran struck 10 vessels near the Strait of Hormuz after the U.S. sank five Iranian tankers.

The attacks prompted U.S. President Donald Trump to caution Tehran with threats of strikes against Iran’s Pickaxe Mountain.

The escalation has heightened concerns over shipping through the Strait of Hormuz, a vital energy-trade chokepoint, while Houthi strikes on Saudi Arabia have also raised risks to alternative export routes via the Red Sea.

Houthi forces launched ballistic missiles and drones at the southern Saudi cities of Abha, Khamis Mushait and Jazan on Wednesday, in what the Saudi-led coalition confirmed was their second straight day of attacks.

Saudi Arabia’s benchmark index eased 0.1%, weighed down by a 1.1% slide in Saudi Arabian Mining Company. Oil major Saudi Aramco, on the other hand, added 0.4%.

Brent crude futures were up $3.58, or 3.51%, at $104.79 a barrel by 1236 GMT.

Dubai’s main share index fell 0.4%, with a 0.7% drop in blue-chip developer Emaar Properties.

“Investor sentiment across GCC bourses continues to be dominated by caution following recent escalations,” said George Pavel, General Manager at Naga.com Middle East. “Tehran’s rhetoric, disrupted shipping through the Strait of Hormuz and sustained strikes on tankers are stoking fears of a protracted standoff, further clouded by the uncertain trajectory of Oman-Iran negotiations.”

In Abu Dhabi, the index edged 0.1% higher.

The Qatari index lost 0.3%, with the Gulf’s biggest lender Qatar National Bank retreating 1.4%.

Outside the Gulf, Egypt’s blue-chip index dropped 0.4%, with Commercial International Bank declining 0.7%.