DUBAI: Stock markets across the Gulf ended lower on Sunday as investors reacted to renewed regional tensions following claims by Yemen’s Houthi movement that it had targeted locations in Saudi Arabia’s capital with missiles and drones.
Saudi Arabia’s benchmark share index recovered some of its earlier losses but still finished 0.3 per cent lower. Shares in ACWA Power declined 2.8 per cent, weighing on the market.
The sell-off followed Saturday’s developments in Riyadh, where flames and heavy smoke were seen near the capital’s main airport after authorities issued warnings about potential security threats.
The latest Saudi-Houthi confrontation has added another dimension to the regional conflict that began following US and Israeli strikes on Iran in late February.
US President Donald Trump has reportedly declined Saudi requests for direct American military action against the Houthis.
Investors Await Trump’s Meeting with Gulf Leaders
Market attention is now shifting towards Trump’s scheduled meeting with Gulf leaders this week.
Daniel Takieddine, co-founder and chief executive of Sky Links Capital Group, said signs of a meaningful reduction in regional tensions could help restore investor confidence.
Despite the broader decline in Saudi shares, energy giant Saudi Aramco recovered from losses earlier in the session and closed 1.3 per cent higher.
Meanwhile, three Iranian sources familiar with diplomatic discussions said China had privately urged Tehran to use its influence to restrain the Iran-aligned Houthis following an appeal from Saudi Arabia.
Qatar and Egypt Also Record Losses
Qatar’s main stock index fell 1.1 per cent, with petrochemical producer Industries Qatar declining 4.1 per cent.
Outside the Gulf, Egypt’s blue-chip index ended the session 0.2 per cent lower.
The market declines reflected investor caution as diplomatic efforts continued alongside escalating military tensions in the Middle East.
