Major stock markets across the Gulf closed lower on Wednesday as escalating military tensions in the Middle East and fresh US restrictions on Iran’s oil exports unsettled investors, raising concerns about the region’s economic outlook.
Fresh exchanges between the United States and Iran intensified fears that recent efforts to ease hostilities were unravelling. American officials said US forces struck Iranian air defence installations, coastal monitoring systems and drone launch facilities, while Iran’s Revolutionary Guards claimed responsibility for attacks on US military bases in Bahrain and Kuwait, where air raid sirens were activated.
Adding to the uncertainty, Washington revoked a waiver that had previously allowed Iran to continue exporting oil to international markets. Tehran condemned the move, accusing the United States of violating the agreement intended to bring the conflict to an end.
The deteriorating security situation also disrupted maritime activity in the Gulf. A Qatari liquefied natural gas tanker was reportedly at risk of explosion, while a Saudi oil tanker sustained damage near the Strait of Hormuz, prompting maritime authorities to classify the threat to shipping through the strategic waterway as “severe.”
Renewed tensions pushed global oil prices higher, with Brent crude rising 3.2% to $76.56 a barrel in early trading.
Saudi Arabia’s benchmark stock index slipped 0.2%, weighed down by losses in banking stocks, although gains in energy giant Saudi Aramco helped limit the decline.
Dubai’s main index fell 1% as selling pressure hit heavyweight property developer Emaar Properties and Dubai Islamic Bank.
The Abu Dhabi market also ended lower, with Alpha Dhabi Holding posting notable losses, while Qatar’s benchmark index edged down as Qatar National Bank, the country’s largest lender, declined alongside the broader market.
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