Most Gulf equities slipped in early trading on Sunday as the US-Israeli war on Iran entered its third week with US President Donald Trump threatening further strikes on the Kharg Island oil export hub and Tehran vowing to intensify its response, Reuters reported.
Iranian drone and missile strikes have hit airports, hotels, ports and military and oil installations across the region, exacting an economic and military toll on nearby Gulf states.
Saudi Arabia’s benchmark index (.TASI) was down 0.8%, with Al Rajhi Bank (1120.SE) falling 0.9% and the country’s biggest lender Saudi National Bank (1180.SE) retreating 1.9%.
The Trump administration has rebuffed efforts by Middle Eastern allies to launch diplomatic negotiations aimed at ending the war with Iran, three sources familiar with the matter said.
The US president also called on allies to deploy warships to help secure the Strait of Hormuz, a vital route for global energy supplies, as Tehran vowed to escalate its response.
Crude futures rose on Friday as the strait remained closed.
In another sign of the economic fallout from the conflict, Formula One’s Bahrain and Saudi Arabian Grand Prix will not take place in April, the sport announced on Saturday.
The Qatari index (.QSI) fell 0.5%, with the Gulf’s biggest lender by assets Qatar National Bank (QNBK.QA) down 1.3%.
Bahrain’s index (.BAX) eased 0.3%, while Oman’s (.MSX30) was down 0.4%.
