Middle Eastern stock markets delivered mixed performances on Sunday as escalating geopolitical tensions unsettled investors. Saudi Arabia's stock market advanced on the back of rising oil prices, while Qatar recorded its lowest close in more than six years and Egypt suffered a sharp decline amid growing regional instability.
Saudi Arabia's benchmark index climbed 0.8% to close at 10,190 points, supported by a 2.1% gain in Saudi Aramco, the kingdom's state-backed oil giant.
The gains came as crude oil prices surged on Friday, with Brent crude futures rising by $3.94, or 3.7%, to settle at $109.86 per barrel. This marked their highest closing level since May 19.
Investors remain concerned that escalating tensions across the Middle East could disrupt oil supplies and further tighten global energy markets. Traders are also assessing the potential contribution of Russian diesel supplies to the international market.
Qatar Hits Six-Year Low
Qatar's stock market came under significant pressure, with its benchmark index falling 2% to 8,634 points, its lowest closing level since April 2020.
Industries Qatar, a major petrochemical producer, declined 4.3%, while Qatar Islamic Bank dropped 2.6%, adding to the market's losses.
Developments surrounding the Strait of Hormuz also remained in focus. Iranian Foreign Minister Abbas Araqchi said on Sunday that Tehran's proposal to the United States to reopen the strategic waterway within seven days remained on the table.
The strait is a critical route for global oil shipments, making any potential disruption a major concern for energy markets and investors worldwide.
Egypt Stocks Slide Amid Regional Tensions
Outside the Gulf, Egypt's benchmark EGX30 index fell 2.6% to 50,896 points, marking its steepest intraday decline since February.
The sell-off came as Cairo expressed its readiness to support Saudi Arabia in safeguarding its security and stability amid intensifying regional hostilities.
Yemen's Iran-aligned Houthi movement has stepped up attacks targeting Saudi Arabia, the world's largest oil exporter, adding to concerns over regional security and the potential consequences for global energy supplies.
The developments have heightened uncertainty across financial markets, with investors closely monitoring the potential economic and geopolitical fallout.
Mixed Performance Across Gulf Markets
Other regional markets also ended lower on Sunday.
Bahrain's benchmark index declined 0.5% to 1,899 points, while Oman's index slipped 0.3% to 7,656 points. Kuwait's benchmark fell 0.2% to 8,871 points.
The contrasting performances highlight how rising oil prices can support energy-producing economies such as Saudi Arabia, even as broader geopolitical uncertainty weighs on investor confidence across the region.
Market Closing Summary
– Saudi Arabia: The benchmark index gained 0.8% to close at 10,190 points.
– Qatar: The index fell 2% to 8,634 points, its lowest close since April 2020.
– Egypt: The EGX30 declined 2.6% to 50,896 points.
– Bahrain: The benchmark index dropped 0.5% to 1,899 points.
– Oman: The index eased 0.3% to 7,656 points.
– Kuwait: The benchmark index fell 0.2% to 8,871 points.
Outlook
Investors across the Middle East are likely to remain focused on geopolitical developments, oil price movements and the security of critical shipping routes.
While higher crude prices could provide support for oil-exporting economies, prolonged regional tensions and the threat of supply disruptions may continue to fuel market volatility.
For global investors, the direction of energy prices and developments surrounding the Strait of Hormuz will remain important factors shaping market sentiment in the days ahead.
Source: Reuters
Reporting: Ateeq Shariff
Editing: Joe Bavier
