Most Gulf Stock Markets Decline Amid Escalating US-Iran Exchange of Strikes

Most Gulf stock markets declined at the close of trading today, Sunday, amidst escalating tensions and intense missile and drone strikes exchanged between US and Iranian forces. This development follows Tehran's renewed announcement of closing the Strait of Hormuz and targeting American facilities in several countries across the Gulf region. The wave of reciprocal attacks between the United States and Iran over the past few days prompted US President Donald Trump to declare the end of a ceasefire between the two sides, though he hinted at the possibility of resuming talks. This escalation in tension came after previous attacks on commercial ships in the region. Iran had announced the closure of the strait following a warning shot fired at a vessel sailing in an unauthorized path, and on Sunday, it reported taking a second ship out of service. Regarding stock market performance, the Saudi index registered a slight increase, bolstered by a rise in shares of the giant oil company Saudi Aramco. In a related context, informed sources indicate that the Kingdom is considering expanding the capacity of its crude oil pipeline leading to its western Red Sea coast. This expansion could enable Saudi Arabia, and potentially neighboring countries, to transport larger volumes of oil without needing to transit the Strait of Hormuz. In Qatar, the main index saw a slight rise, with shares of petrochemicals specialist Industries Qatar gaining. Outside the Gulf region, Egypt's main equities index declined, affected by a drop in shares of Talaat Moustafa Holding Group. Data from the Egyptian Central Bank showed that the country's current account deficit increased significantly in the quarter from January to March, compared to the same period last year. Meanwhile, in Bahrain and Oman, the main indices recorded increases, while Kuwait's main index experienced a decline.