On Thursday, 12th of March, Most of the stock markets in the Gulf region closed in Red. Dubai’s stock market declined most as tensions in the Middle East increased after Iran attacked oil and transport targets in the region. Dubai’s main stock index dropped 3.6% as shares of Emaar Properties and Emirates NBD both dropped 4.9%.
Iran said it would target economic and banking interests linked to the U.S. and Israel in the region after an Iranian bank was attacked. Iran warned that oil prices could rise to $200 per barrel after its forces attacked commercial ships. The International Energy Agency also suggested releasing emergency oil reserves to reduce the impact of a possible oil crisis.
A container ship was hit by a projectile near Jebel Ali in the United Arab Emirates, causing a small fire. Dubai authorities also reported that a drone fell near Dubai Creek Harbour.
In Abu Dhabi, the stock index dropped 2.3%, with Aldar Properties falling 4% and Abu Dhabi Islamic Bank losing 5%.
Banks such as Citigroup and Standard Chartered told some staff in Dubai to work from home after starting office evacuations. Analysts say UAE markets may stay unstable because of regional tensions. However, strong local economic conditions could help markets recover once the situation improves.
In Qatar, the stock index fell 0.9%, with Qatar National Bank dropping 1.8% while in Saudi Arabia, the main index closed 0.5% lower, as shares of Saudi Aramco fell 1.1%. On energy markets front, Oil prices increased, with Brent Crude rising about 5% to $96.88 per barrel, after briefly touching $100 earlier.
Saudi Arabia also said it intercepted a drone heading toward the Shaybah Oil Field. Meanwhile, stock markets in Bahrain and Kuwait fell slightly, while Oman saw a small rise.
Outside the Gulf, Egypt’s main stock index dropped 0.9%, and shares of Commercial International Bank fell 2.6%.
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