Gulf markets fall as fresh Houthi strikes on Saudi Arabia raise regional risk

Gulf bourses ended in the red on Thursday as a new wave of Houthi attackson Saudi Arabia heightened fears that the conflict could spread.

The US State Department has ordered some diplomats and family members to leave its missions in Saudi Arabia, and plans to pull family members from several other US missions in the region, US officials told Reuters.

Saudi Arabia’s benchmark index declined 2.3%, posting its eighth weekly decline and biggest in over two years. Saudi National Bank, the country’s biggest lender by assets, slid 5.1%, and oil giant Saudi Aramco lost 0.7%.

Riyadh has answered the Houthi attacks with a wave of strikes on missile launcher sites. It has vowed to protect the kingdom and said it has intercepted many of the group’s ballistic missiles.

Dubai’s main index dropped 0.7%, with top lender Emirates NBD falling 2.9%.

In Abu Dhabi, the index lost 0.7%.

Geopolitical uncertainty and threats to energy flows through the Strait of Hormuz kept investors on edge. Reports that some US troops and diplomats have left Middle East posts deepened fears of re-escalation and retaliation, said Milad Azar, market analyst at XTB MENA.

Tensions also rose in the northern Gulf. Iran’s Islamic Revolutionary Guard Corps Navy said four vessels involved in illegal oil transfers were hit simultaneously and caught fire after its forces tracked them on Wednesday.

Meanwhile, Iranian media separately reported explosions of unknown nature and origin in Sirik in southern Iran.

Qatar’s index slipped 0.3%. Qatar National Bank , the Gulf’s biggest lender, lost 1%.

Outside the Gulf, Egypt’s blue-chip index tumbled 3.4%, its biggest intraday fall since June 2025, as most of its constituents were in negative territory.