Gulf equity indexes mostly ended lower on Tuesday as tension flared between regional oil powers and neighbours Saudi Arabia and the United Arab Emirates.
Dubai's main share index (.DFMGI), opens new tab retreated 2%, LSEG data showed, while Abu Dhabi's main index (.FTFADGI), opens new tab and Saudi Arabia (.TASI), opens new tab both dropped 1% each.
Saudi Arabia said its national security was a red line, hours after a Saudi-led coalition launched strikes on what it described as foreign military support to UAE-backed southern separatists in Yemen, and also asked UAE forces to leave the country.
This month has pitted the (STC) against Saudi-supported Yemeni government troops, bringing the two Gulf allies closer than ever to an all-out conflict in Yemen, mired in civil war since 2014.
The United Arab Emirates said it was disappointed with Saudi Arabia's statement regarding Yemen, and surprised by the airstrike on Mukalla.
The Dubai index saw its biggest daily decline since June. Blue-chip developer Emaar Properties (EMAR.DU), opens new tab fell 2.8% and sharia-compliant lender Dubai Islamic Bank (DISB.DU), opens new tab lost 2.3%.
Among Saudi shares, Saudi Arabian Mining Co (1211.SE), opens new tab slipped 2.6% and Al Rajhi Bank (1120.SE), opens new tab eased 0.3%. Oil giant Saudi Aramco (2222.SE), opens new tab was down 0.3%.
Oil prices - a catalyst for the Gulf's financial markets - were little changed as investors took stock of dented hopes of a Russia-Ukraine peace deal and rising geopolitical tensions in the Middle East around Yemen.
The Qatari index (.QSI), opens new tab finished flat.
Bahrain (.BAX), opens new tab bucked the trend with a 0.6% rise after the country announced several fiscal reform measures on Monday.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab edged 0.1% lower.
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