Most Gulf markets in the red amid escalating hostilities

Major stock markets in the Gulf retreated on Monday as hostilities escalated across the region and Iran asserted that it had sealed the strategically vital Strait of Hormuz, sending oil prices higher and reigniting global inflation fears.

U.S. forces carried out another wave of strikes against Iran on Sunday, targeting dozens of sites across multiple locations with precision munitions, according to Central Command. Iran’s Revolutionary Guards said Monday that they had retaliated by attacking U.S. military bases in Kuwait and Bahrain.

U.S. President Donald Trump said on Sunday that the Strait of Hormuz remained open to commercial traffic, despite Iran’s earlier declaration that it had closed the waterway after striking a vessel it said had traveled along an unauthorized route.

The widening conflict has cast fresh uncertainty over the future of an interim U.S.-Iran agreement signed last month, which sought to reopen the strait and bring the war to an end following a further 60 days of negotiations.

Saudi Arabia’s benchmark index eased 0.2%, with oil major Saudi Aramco falling 0.5%.

Meanwhile, Brent crude futures climbed $3.10, or 4.08%, to $79.11 by 0325 GMT.

Dubai’s main share index declined 1.4%, dragged by a 2.6% slide in the top lender, Emirates NBD and a 1.4% decrease in blue-chip developer Emaar Properties.

In Abu Dhabi, the index fell 0.5%, with Abu Dhabi Islamic Bank losing 2.1%.

The United Arab Emirates’ defence ministry said on Sunday its air defense systems were responding to a missile threat.

Qatar’s stock market was closed as the Qatar Stock Exchange joined the nation in mourning the passing of His Highness the Father Emir, Sheikh Hamad bin Khalifa Al Thani.