Mideast Stocks: Most Gulf equities in red as #Iran escalates regional attacks

Mideast Stocks: Most Gulf equities in red as Iran escalates regional attacks

Most stock markets in ⁠the Gulf ended lower on Thursday, with the Dubai index leading losses as Iran escalated attacks ‌on oil and transport infrastructure across the Middle East, fuelling concern over a potentially prolonged conflict.

Iran said the world should ​be ready for oil priced at $200 a barrel after its forces attacked merchant vessels on Wednesday. Meanwhile, the International Energy Agency ​called for large-scale ​release of strategic reserves to cushion what could become one of the worst oil shocks since the 1970s.

Dubai's main share index fell 3.6%, hit by declines of 4.9% in blue-chip ⁠developer Emaar Properties and 4.9% in top lender Emirates NBD.

A military spokesperson said on Wednesday Iran would target U.S. and Israel-linked economic and banking interests in the region after an attack on an Iranian bank.

A projectile struck a container ship 35 nautical miles north of Jebel Ali in the United Arab Emirates, causing ​a small fire, the ‌United Kingdom Maritime ⁠Trade Operations said ⁠on Thursday.

Dubai authorities, meanwhile, said a drone fell onto a building near Dubai Creek Harbour.

In Abu Dhabi, the index ​dropped 2.3%, with Aldar Properties losing 4% and Abu Dhabi Islamic Bank declining ‌5%.

Citigroup and Standard Chartered have told Dubai staff to work from ⁠home after beginning office evacuations, Reuters reported on Wednesday, citing sources.

UAE markets may continue to face volatility as investors respond to unfolding regional events. Even so, healthy domestic fundamentals could help pave the way for a rebound once tensions ease, said Milad Azar, market analyst at XTB MENA.

More broadly, investor focus is expected to remain on possible disruptions to oil supply and shipping flows, as well as on the prospects for a rapid de-escalation in the region, Azar added.

The Qatari index lost 0.9%, with the Gulf's biggest lender by assets Qatar National Bank falling 1.8%.

Saudi Arabia's benchmark index gave up early ‌gains to close 0.5% lower, hit by a 1.1% fall in oil ⁠behemoth Saudi Aramco.

Brent futures were up $4.90, or 5.33%, at $96.88 a barrel by 1107 ​GMT, having hit $100 per barrel in earlier trading.

Saudi Arabia's defence ministry said on Thursday it intercepted a drone heading toward the Shaybah oilfield, in the third such incident reported on the same day.

Bahrain's index eased 0.2% and ​Kuwait's was down 0.5%.

Bucking ‌the trend, Oman's index added 0.4%.

Outside the Gulf, Egypt's blue-chip index lost 0.9%, ⁠with Commercial International Bank losing 2.6%.