Most Gulf stock markets extend losses amid rising US-Iran tensions

Most Gulf stock markets closed lower on Thursday, extending the previous session’s losses, as renewed hostilities between the United States and Iran weighed on investor sentiment. Iranian armed forces struck U.S. military infrastructure in neighbouring Gulf states on Thursday after U.S. attacks on Iran’s southern coastal and eastern provinces, increasing pressure on a ceasefire that had been in place for three weeks. The U.S. military said on Wednesday its latest strikes on Iran were aimed at keeping the Strait of Hormuz open after it said Iranian forces attacked three tankers in the area. The assault came hours after U.S. President Donald Trump said he believed the interim ceasefire with Iran to be “over”. Brent crude futures were up 53 cents, or 0.68%, to $78.55 a barrel at 1148 GMT. Saudi Arabia’s benchmark stock index lost 0.4%, with Al Rajhi Bank declining 0.4%. Rising geopolitical tensions in recent days could dampen risk appetite and create downside risks across some Gulf markets, said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group. Any further escalation could weigh on sentiment and encourage caution. However, upcoming quarterly earnings, particularly from flagship companies, may help guide market direction, with strong results potentially offsetting some geopolitical concerns, added Takieddine. Dubai’s main share index fell 0.2%, with blue-chip developer Emaar Properties slipping 0.7%, while budget carrier Air Arabia dropped 0.6%. Abu Dhabi’s benchmark index finished flat. Shares of Emirates Telecommunications Group reversed early losses to end 0.8% higher, a day after a media report of a widespread service outage. In Qatar, the index dipped 0.8%, with the region’s biggest lender, Qatar National Bank , down 0.7%. Outside the Gulf, Egypt’s blue-chip index gained 0.5%. Saudi Arabia fell 0.4% to 10,808 Abu Dhabi flat at 9,882 Dubai eased 0.2% to 5,991 Qatar dropped 0.8% to 10,091 Egypt was up 0.5% to 52,312 Bahrain lost 0.2% to 2,010 Oman added 0.1% to 7,644 Kuwait closed flat at 9,090