Most Gulf stock markets ended lower on Sunday as investors grew cautious over the possibility of escalating tensions in the region.
Uncertainty weakened sentiment and some traders reduced risk and exposure to stocks.
The US military is preparing for a possible weeks-long operation against Iran if President Donald Trump orders an attack, Reuters reported on Saturday, citing two US officials.
Such an escalation could lead to a much more serious conflict than previously seen between the two countries.
Iran seeks a nuclear deal with the United States that would bring economic benefits to both countries, an Iranian diplomat was reported to have said on Sunday, days ahead of a second round of talks between Iran and the United States.
Saudi Arabia’s benchmark index fell 0.2%, affected by a 0.5% decline in Al Rajhi Bank and a 0.9% decline in oil giant Saudi Aramco.
The Gulf market remains resilient and appears to have the potential for sustained growth. However, Summer Hasn, senior market analyst at XS.com, said concerns about regional conflicts involving Iran, the US and Israel are currently dominating the world.
In Qatar, the index fell 0.4%, with Qatar Islamic Bank falling 1.1%.
Outside the Gulf, Egypt’s blue-chip index rose 3.6% to close at an all-time high, with nearly all constituents in positive territory after the most populous Arab nation cut interest rates by 100 basis points.
Saudi Arabia decreased by 0.2% to 11,229 people Qatar decreased by 0.4% to 11,468 people Egypt decreased by 3.6% to 52,308 people Bahrain decreased by 0.2% to 2,048 people Oman decreased by 0.7% to 7,129 people Kuwait decreased by 0.6% to 9,236 people
(Reporting by Ateeq Shariff in Bengaluru; Editing by Christina Fincher)
