Hormuz tensions put pressure on Gulf stocks and raise oil and gold bets

Most Gulf stock markets declined, on Sunday, against the backdrop of the American and Israeli attacks on Iran, and the subsequent Iranian attacks that targeted Gulf cities.

The attacks on Iran and the subsequent attacks on Gulf cities raised fears of a widening scope of regional instability, especially with the threat of closing the Strait of Hormuz.

Gulf stocks declined

The Saudi Arabia’s main stock, the Tassi, in today’s trading by about 2.6%, while the Kuwait Stock Exchange announced the suspension of trading until further notice due to what it described as the “exceptional circumstances” that the country is going through.

According to international reports, the movements of the Middle East markets are an early indicator to measure investors’ assessment of the repercussions of the escalation on assets, from Oilto safe haven currencies And gold.

Barclays Bank analysts raised their expectations for the price of Brent crude to about $100 per barrel, compared to previous estimates of $80.

Taher Abbas, head of research at the Omani “Ubar Capital” company, said that the markets of the Gulf Cooperation Council countries are likely to experience more pressure as investors price a higher and perhaps extended geopolitical risk premium, according to what Reuters reported.

He pointed out that the rise in oil prices provides temporary financial support to governments, but the greatest risk is that shipping routes, especially through the Strait of Hormuz, may be affected, which may affect energy flows and global trade.

For his part, Hani Abu Aqla, chief market analyst in the Middle East and North Africa region at XTB, warned of the high risk of correction and price fluctuations in light of escalating tensions.

In the Sultanate of Oman, the Muscat Market Index decreased It fell to 1.8% after a drop of more than 3%, and the Bahrain index fell by 0.9%, while the Qatar Stock Exchange was closed on the occasion of a bank holiday.

Outside the Gulf, the leading stock index in Egypt fell by 5.5% in early trading, with all its components declining.

The disruption of navigation traffic through the Strait of Hormuz remains one of the most prominent risks that pressures investor morale and threatens to disrupt operations in a number of sectors.

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