Most Gulf markets slip on Middle East hostilities

Most Gulf bourses closed lower on Wednesday, after U.S. President Donald Trump said the memorandum of understanding to end the conflict with Iran was “over”, renewing fears of disruptions to Middle East oil supplies.

The agreement, brokered by Pakistan last month to provide a 60-day window for negotiations, came under strain after the U.S. launched fresh strikes on Iran.

The U.S. said it had struck Iranian air defence systems, coastal surveillance facilities and drone launch sites, while Iran’s Revolutionary Guards said they had targeted U.S. military positions in Bahrain and Kuwait, where air raid sirens sounded on Wednesday.

Washington also moved to revoke a waiver that had allowed Iran to sell oil on the global market, a move Iran’s foreign ministry said violated the framework agreement aimed at ending the war.

Brent crude futures were up $3.14, or 4.23%, to $77.30 a barrel at 1231 GMT.

Dubai’s main share index declined 1.5%, dragged by a 2.7% slide in toll operator Salik and a 1% drop in blue-chip developer Emaar Properties .

In Abu Dhabi, the index fell 0.6%, with Alpha Dhabi Holding losing 3.5%.

The Qatari index was down 0.8%, with the Gulf’s biggest lender Qatar National Bank slipping 1%, despite reporting a rise in quarterly profit.

Saudi Arabia’s benchmark index finished flat, with oil major Saudi Aramco advancing 2.6%.

Outside the Gulf, Egypt’s blue-chip index retreated 1.8%.