Most Gulf shares close lower as Saudi-Houthi fighting rages on

DUBAI: Most Gulf bourses ended lower on Sunday and Saudi Arabia’s index registered its worst session in 18 months as fighting between the kingdom and Yemen’s Iran-aligned Houthis showed no sign of abating.

Saudi air defences downed drones and missiles over Riyadh and the south on Sunday, the Saudi-led coalition said.

A day earlier, the Houthis said they hit Saudi oil facilities and airports and the Saudi-led coalition said it downed two missiles.

Saudi Arabia’s benchmark index pared losses to finish 2.7 percent lower after falling as much as 3.4 percent.

The index posted its worst intraday performance since April 2025, with heavyweight Saudi Aramco falling 0.9 percent.

GCC stocks stayed under pressure as tensions and shipping disruptions in key waterways kept investors wary. Fears of renewed US military action dented de-escalation hopes, with traders awaiting diplomatic progress, said George Pavel, general manager at Naga.com Middle East.

In Qatar, the index reversed early losses to inch 0.1 percent higher.

Outside the Gulf, Egypt’s blue-chip index plunged 3.6 percent, its biggest single-day fall since June 2025, with most of its constituents in negative territory.