Major stock markets in the Gulf experienced a decline in early trade on Wednesday, following Iran’s ballistic missile strike on Israel, which heightened fears of a wider regional conflict.
Saudi Arabia’s benchmark index (.TASI) slid 1.1%, impacted by a 0.8% fall in aluminium products manufacturer Al Taiseer Group (4143.SE) and a 0.6% decrease in Al Rajhi Bank (1120.SE).
Additionally, oil company Saudi Aramco (2222.SE) eased by 0.2%.
Iran announced on Wednesday that its missile attack on Israel, described as its most significant military assault on the country, was over, barring further provocation. Meanwhile, Israel and the United States pledged to retaliate, raising fears of a wider war.
According to U.S. news website Axios, Israel is set to launch a “significant retaliation” within days, potentially targeting oil production facilities in Iran and other strategic sites, as reported by Israeli officials.
Dubai’s main share index (.DFMGI) fell as much as 1.1%, with most constituents on the index in negative territory. This included blue-chip developer Emaar Properties (EMAR.DU), which retreated by 1.4%.
Other decliners included budget airliner Air Arabia (AIRA.DU), which was down 0.7%.
In Abu Dhabi, the index (.FTFADGI) lost 0.6%.
The Qatari index (.QSI) also fell by 0.4%, with Qatar National Bank (QNBK.QA), the Gulf’s largest lender, down 0.4%.
Oil prices, a crucial driver for the Gulf’s financial markets, jumped by over a dollar amid rising concerns that Middle East tensions could escalate, potentially disrupting crude output from the region.