DUBAI: Gulf stock markets closed mixed on Wednesday, with Saudi shares leading losses after an attack on Saudi Aramco headquarters deepened fears of an escalating conflict between the kingdom and Yemen’s Houthis.
Houthis vowed on Wednesday to continue targeting Saudi airports and oil facilities, a day after a strike that sources said heavily damaged the headquarters of oil giant Saudi Aramco .
Saudi Arabia’s benchmark index fell 1.7 percent, weighed down by 2 percent declines in both Saudi National Bank, the country’s largest lender by assets, and Al Rajhi Bank.
Aramco shares down 1.6 percent.
The kingdom’s Energy Ministry said an administrative building belonging to the state oil company in the eastern city of Dhahran was hit, causing a limited fire, as fighting between the kingdom and the Iran-allied group intensified.
Elsewhere, Qatar’s index fell 0.7 percent, weighed down by a 2 percent drop in petrochemical maker Industries Qatar.
Geopolitical developments in the region remained in focus. Continued disruptions in the Strait of Hormuz kept investors cautious, while hopes for progress in talks lent some stability to markets. The spotlight is now on firm de-escalation timelines to further ease tensions, said Mahmoud Mashal, Senior Market Analyst, VT Markets Dubai.
Regional tensions rose further as two senior Iranian officials told Reuters that Tehran is using new tactics to target ships sailing through the Strait of Hormuz. They said the aim is to keep oil prices high and influence the US midterm elections.