Business
Gulf markets retreat amid escalating Middle East conflict; Saudi edges higher
Gulf markets retreat amid escalating Middle East conflict; Saudi edges higher
About this update from Al Rajhi Bank
Most Gulf stock markets slipped in early Monday trading after Yemen's Houthis launched attacks on Israel over the weekend, further escalating the U.S.-Israel conflict with Iran and its proxies in the Middle East.Amid the rising tensions, U.S. President Donald Trump said Washington and Tehran had been communicating both directly and indirectly, describing Iran's new leadership as "very reasonable." At the same time, additional U.S. troops arrived in the region, while the Israeli military said it was targeting Iranian government infrastructure across Tehran on Monday. Late Sunday, the Financial Times reported that Trump said the U.S. could seize Kharg Island in the Persian Gulf — a key hub for Iran's oil exports — though he also suggested that a ceasefire could be reached quickly.Meanwhile, Iran said it was prepared to respond to any U.S. ground offensive, accusing Washington on Sunday of planning a land assault even as it continued to pursue negotiations.Dubai's main share index DFM:DFMGI dropped 1.1%, dragged down by a 3.1% slide in top lender Emirates NBD DFM:EMIRATESNBD and a 1.9% decline in sharia-compliant lender Dubai Islamic Bank DFM:DIB.In Abu Dhabi, the index ADX:FADGI lost 0.5%, hit by a 4.1% plunge in Abu Dhabi Ship Building ADX:ADSB and 0.1% fall in Aldar Properties ADX:ALDAR.Meanwhile, shares in Fertiglobe ADX:FERTIGLB, a producer of ammonia and urea, climbed 2.3%.Emirates Global Aluminium, the Middle East's largest producer of the metal, said on Saturday that its Al Taweelah production base in the UAE had suffered significant damage in Iranian missile and drone attacks, while Aluminium Bahrain (Alba) BAHRAIN:ALBH, which operates the world's largest single-site smelter, said on Sunday it was assessing damage from the strikes. Alba shares were down 0.9%.The Qatari index QSE:GNRI declined 0.9%, with the Gulf's biggest lender Qatar National Bank QSE:QNBK retreating 1.1%.Saudi Arabia's benchmark index TADAWUL:TASI bucked the regional trend to gain 0.3%, helped by a 0.8% rise in Al Rajhi Bank TADAWUL:1120 and a 0.5% increase in oil giant Saudi Aramco TADAWUL:2222.Elsewhere, ADES Holding TADAWUL:2382 added 0.6%, after the oil drilling group beat analyst expectations with a 2% rise in annual net profit and reiterated its strong growth forecast for this year despite some rig suspensions last year and recent halts due to the war.Saudi crude exports red...