Gulf stock markets slide under pressure from Strait of Hormuz tensions and Houthi attacks
Gulf stock market indices fell today Sunday due to disturbances in the Strait of Hormuz and Houthi attacks on Saudi Arabia, with major bank stocks declining and natural gas contracts affected.
Translated by Alqyas from Al-Jarida — Original source
Most Gulf stock exchanges closed lower on Sunday as traders assessed the fallout from disruptions in the Strait of Hormuz and Houthi rebel attacks, allied with Iran, on Saudi Arabia.
The main Saudi index fell 0.7%, dragged down by a 2.3% drop in shares of the Saudi National Bank, the kingdom’s largest bank by assets.
The Saudi-led coalition announced on Sunday that it had intercepted two ballistic missiles fired at the capital, Riyadh, as well as three drones over the Eastern Province.
Qatar’s index declined 1.8%, with all listed stocks falling and shares of Qatar National Bank, the largest bank in the Gulf region, dropping 2.3%.
Due to the Iran war, Qatar’s liquefied natural gas (LNG) exports suffered a severe blow after an Iranian attack in March forced Qatar to declare force majeure regarding deliveries.
Currently, a long-term LNG contract in the Gulf has been canceled on this basis, marking the first such cancellation since the conflict began. Analysts say the Polish company Orlen could save up to $2 billion as a result.
On Friday, Turkey and Qatar signed a joint defense agreement to bolster regional security. In a statement following talks between the leaders of the two countries, they pledged to form a united front against any foreign armed attack on either nation.
The index fell 0.4% in Bahrain, 0.1% in Oman, and 0.3% in Kuwait.
