Most Gulf bourses end lower as Hormuz attacks hit wartime peak

Most Gulf stock markets closed lower on Thursday as tanker attacks in the Strait of Hormuz hit a wartime high, deadly strikes on Saudi airports widened the conflict and stalled US-Iran diplomacy offered investors little relief.

The latest attack came on Wednesday, when a tanker was hit by multiple projectiles 51 nautical miles north of Qatar’s Madinat ash Shamal, causing casualties, according to the United Kingdom Maritime Trade Operations (UKMTO).

The surge in attacks came just as Gulf producers were pushing to export more.

Saudi Arabia’s benchmark index ended a sixth consecutive week in the red after falling 1.6%, its biggest one-day decline since March. Saudi National Bank, the country’s largest lender by assets, lost 3.1%.

Shipping traffic quickly took the hit. The number of vessels passing through the Strait of Hormuz fell to its lowest in more than two months, shipping data showed, though Gulf oil exports have recovered.

A US response over a plan to reopen the Strait of Hormuz within seven days is still under review in Tehran.

The violence also spread beyond the sea. Saudi Arabia’s civil aviation authorities said on Wednesday that three people had been killed in attacks on the kingdom’s airports, as fighting intensified in Yemen between the Houthis and Yemen government forces. That added to the risks facing Gulf markets.

In Abu Dhabi, the index lost 1.6%, while Dubai’s main share index shed 1.7%.

Investors stayed cautious amid regional tensions and stalled diplomacy, according to Mahmoud Mashal, senior market analyst at VT Markets in Dubai. Reports of a possible resumption of attacks weighed on sentiment and cast doubt on US-Iran talks, he said, while repeated tanker strikes and disruption at major maritime chokepoints kept worries alive as traffic fell.

Qatar’s benchmark index sank to its lowest level since the pandemic-driven selloff of June 2020, closing down 2.2%. The biggest drag was a 2.9% slide in Qatar National Bank (QNB), the Gulf’s largest lender.

Post trading hours, QNB reported third-quarter net profit of 4.65 billion riyals ($1.28 billion), up from 4.43 billion riyals a year earlier.

The Egyptian bourse was closed for a public holiday.