Most Gulf markets in red as Israel-#Iran conflict escalates | Reuters

Most Gulf markets in red as Israel-Iran conflict escalates | Reuters

Most stock markets in the Gulf ended lower on Wednesday with investors exercising restraint due to fighting between Iran and Israel that entered a sixth day, sparking fears of potential regional instability.

Iran's Supreme Leader Ayatollah Ali Khamenei rejected U.S. President Donald Trump's demand for unconditional surrender on Wednesday, as Iranians jammed the highways out of Tehran fleeing from intensified Israeli airstrikes.

Saudi Arabia's benchmark index (.TASI), opens new tab declined 1.2%, weighed down by a 3.3% slide in ACWA Power Company (2082.SE), opens new tab and a 2% drop in Saudi Arabian Mining Company (1211.SE), opens new tab.

Among other losers, Prince Waleed bin Talal-backed airline Flynas Company (4264.SE), opens new tab closed 3.4% lower in debut trade.

Elsewhere, oil giant Saudi Aramco (2222.SE), opens new tab eased 0.3%.

Additionally, investor uncertainty surrounding today's U.S. Federal Reserve meeting is contributing to the cautious mood, with most market participants expecting the central bank to hold interest rates steady, said Joseph Dahrieh, managing principal at Tickmill.

Dubai's main share index (.DFMGI), opens new tab finished 1.2% lower, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab losing 1.2%.

In Abu Dhabi, the index (.FTFADGI), opens new tab was down 0.4%.

Oil prices steadied, after a gain of 4% in the previous session, as markets weighed up the chance of supply disruptions from the Iran-Israel conflict and as they ponder a direct U.S. involvement.

The Qatari index (.QSI), opens new tab lost 0.6%, with Qatar Gas Transport Nakilat (QGTS.QA), opens new tab falling 3.8%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab added 0.4%, helped by a 4.1% jump in Fawry for Banking Technology and Electronic Payment (FWRY.CA), opens new tab.