Most Gulf bourses end lower on Middle East conflict despite diplomatic hopes

Most Gulf stock markets closed lower on Monday as the escalating regional conflict outpaced cautious optimism over diplomatic progress at UN meetings this week.

Energy markets remained on edge after fresh rhetorical threats exchanged between Washington and Tehran were compounded by weekend drone and missile attacks by Yemen’s Houthis targeting Riyadh and Saudi Aramco’s Yanbu energy hub.

Traders took some heart from China’s intervention, urging Tehran to restrain Houthi attacks following a direct appeal from Riyadh. The move comes as diplomatic channels expand ahead of this week’s UN meetings to contain broader Middle East hostilities and protect critical energy infrastructure.

Abu Dhabi’s index fell 1.6%, dragged down by a 4.6% slide in conglomerate International Holding Co , nearly reversing its gains before the session.

IHC has confirmed a corporate restructuring, placing Fount Trust as the ultimate parent of Royal Group for long-term stewardship. The global conglomerate is chaired by UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan.

Dubai’s main share index inched 0.1% higher, helped by a 1.3% rise in top lender Emirates NBD .

Saudi Arabia’s benchmark index declined 0.6%, hit by a 3.4% fall in ACWA Power Co and a 0.9% decrease in oil major Saudi Aramco.

Qatar’s benchmark ended 0.1% higher.

Qatar’s sovereign wealth fund (QIA) is launching a domestic investment division to offset financial strain, shifting focus inward as regional conflict and the closure of the Strait of Hormuz disrupt its vital LNG exports.

Outside the Gulf, Egypt’s blue-chip index slipped 0.7%.