Most Gulf bourses in red on Houthi attack and Hormuz shipping slump
- Saudi Arabia’s benchmark index dropped 0.9%
Most Gulf stock markets closed lower on Tuesday, with Saudi shares posting the biggest losses, as a fresh Houthi attack and a sharp drop in shipping through the Strait of Hormuz heightened fears that the conflict could escalate further.
Saudi Arabia’s benchmark index dropped 0.9%, weighed down by a 1.3% fall in Saudi Arabian Mining Company and a 0.6% dip in oil major Saudi Aramco.
Yemeni officials said the Houthis struck the Khamis Mushait airbase in southern Saudi Arabia with missiles and drones, damaging hangars, radar systems, runways and ammunition depots. The group said the attack was retaliation for Saudi-led strikes in Yemen, as Riyadh weighed its response to the Houthis’ rapid advance.
The escalation has heightened fears that the conflict could spread across the Middle East, threatening energy infrastructure and global oil supplies. Gulf Arab states have postponed planned talks with Iran, adding to diplomatic strains after Saudi Arabia blamed Iran-backed forces for a series of attacks.
Friday’s strikes on Saudi Arabia, which Riyadh blamed on Iran-aligned fighters in Iraq, disrupted the kingdom’s East-West pipeline, a vital export route that allows crude to bypass the blockaded Strait of Hormuz.
Shipping through the strait has slowed sharply since the Iran war began on February 28, deepening concerns over supply disruptions and the economic fallout of a broader regional conflict.
Dubai’s main share index fell 0.8%, with blue-chip developer Emaar Properties down 2.1%. In the previous session, the developer jumped more than 6% after announcing its board would meet on Wednesday to discuss enhancing shareholder returns and capital allocation.
GCC equities came under pressure as geopolitical strains and stalled talks hurt sentiment. Investors are watching for a revised timeline for the postponed Gulf-Iran meeting, with the delay cooling hopes for a Strait of Hormuz reopening and regional de-escalation, said Mahmoud Mashal, senior market analyst at VT Markets Dubai.
In Abu Dhabi, the index rose 0.2%.
The Qatari index lost 0.5%, with the Gulf’s biggest lender, Qatar National Bank falling 0.7%.
Outside the Gulf, Egypt’s blue-chip index gained 0.2%.
| Saudi Arabia | dropped 0.9% to 10,782 |
|---|---|
| Abu Dhabi | added 0.2% to 10,136 |
| Dubai | retreated 0.8% to 5,927 |
| Qatar | declined 0.5% to 9,774 |
| Egypt | rose 0.2% to 54,909 |
| Bahrain | finished flat at 1,929 |
| Oman | was down 0.2% to 7,615 |
| Kuwait | lost 0.2% to 9,296 |
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