DUBAI — Gulf stock markets fell on Monday as renewed tensions in the Middle East weighed on investor sentiment, with major indexes across the region posting losses amid concerns about the latest escalation involving Iran and Israel.
Dubai's benchmark index declined, while shares in Abu Dhabi and Qatar also moved lower, according to market data reported by Reuters. Investors reacted to reports of explosions in several Iranian cities and continued uncertainty surrounding the regional security situation.
The market weakness followed a new exchange of hostilities between Iran and Israel over the weekend. Local media reported explosions in Tehran, Tabriz and Isfahan on Monday, while Iran had launched missiles at Israeli targets a day earlier in retaliation for a strike near Beirut, according to Reuters.
Oil prices rose as traders assessed the potential impact of the conflict on regional stability and energy supplies. Benchmark Brent crude gained sharply in early trading, providing some support for energy-related stocks but adding to broader concerns about market volatility.
In Saudi Arabia, the main stock index was comparatively resilient, supported by gains in some banking and energy shares, including state oil producer Saudi Aramco, Reuters reported. Elsewhere in the Gulf, losses were led by financial and property stocks as investors reduced exposure to riskier assets.
Market participants also monitored diplomatic efforts aimed at preventing further escalation. U.S. President Donald Trump said a deal to end the conflict remained possible and urged Israeli Prime Minister Benjamin Netanyahu to avoid additional strikes, according to Reuters. “A deal to end the war remained within reach,” Trump said, as reported by Reuters.
The decline in Gulf equities mirrored broader weakness in global markets. Stocks in Europe and Asia also came under pressure as rising oil prices and geopolitical uncertainty prompted investors to seek safer assets. Analysts cited concerns that prolonged instability could affect economic activity and financial markets across multiple regions.
By the close of trading, most major Gulf indexes remained in negative territory, while investors continued to monitor developments in the conflict and diplomatic contacts aimed at reducing tensions. Details on any further military or political moves remained unclear as markets ended the session.
