DUBAI: Gulf stock markets were subdued on Sunday as US and Iranian forces traded heavy missile and drone strikes, with Tehran hitting US facilities across the region and again shutting the Strait of Hormuz.
A wave of strikes exchanged between the US and Iran over recent days prompted President Donald Trump to announce that their ceasefire was over, though he signalled that talks could still resume.
The escalation followed several attacks on commercial vessels in the region. Iran stated it had shut the strait after firing a warning shot at a ship on an unauthorised route and on Sunday reported it had disabled a second vessel.
Saudi Arabia’s benchmark index edged 0.1 percent higher, helped by a 0.2 percent rise in oil giant Saudi Aramco. The kingdom is considering expanding capacity of its crude oil pipeline to the western Red Sea coast, five sources close to the matter said, enabling the kingdom and possibly neighbours to transport more oil without crossing the Strait of Hormuz.
The Qatari index was up 0.1 percent, with petrochemicals maker Industries Qatar
gaining 0.6 percent. Qatar’s former emir, whose leadership helped to establish the country as a regional powerhouse, has died aged 74, the Amiri Diwan government body announced on Sunday.
Outside the Gulf, Egypt’s blue-chip index eased by 0.1 percent, with Talaat Moustafa Group Holding down 0.6 percent. Egypt’s current account deficit more than doubled to USD5.1 billion in the January-March quarter, from USD2.3 billion a year earlier, central bank data showed on Sunday.