DUBAI: Stock markets across the Gulf fell sharply on Sunday morning after Israel and Iran launched fresh attacks on each other overnight, sparking fears of a widening conflict in the Middle East.

Due to escalation, the Qatari stock market index slid 2.9 per cent by around 08:15 GMT, with almost all constituents in negative territory.

Among them, Qatar Gas Transport Nakilat extended losses and was down 3.1pc, while Qatar Electricity and Water Company was down 1.7pc.

Qatar National Bank, the Gulf’s biggest lender, retreated 3.3pc.

Israel also attacked Iranian energy sites on Saturday, targeting the South Pars gas field shared with Qatar, raising concerns about regional energy export disruptions.

Saudi Arabia’s benchmark index recovered some ground to trade 1.6pc lower, after plunging 3.6pc at the open as stocks fell across sectors.

In Kuwait, where the main index was down 4.3pc, shares in Jazeera Airways fell as much as 10pc, as airlines avoided the airspace over most of the region.

Elsewhere in the Gulf and wider Middle East, the Muscat Stock Exchange registered a 1.5pc fall, the Bahrain index eased by 0.8pc, while Tel Aviv stocks opened lower by 1.5pc.

The Dubai and Abu Dhabi bourses in the United Arab Emirates, which will reopen on Monday, closed down 1.9pc and 1.3pc, respectively, on Friday.

The Qatari benchmark opens new tab declined 3.2pc — its biggest intraday fall since April — with all its constituents in negative territory including the Gulf’s biggest lender Qatar National Bank, opens new tab, which concluded 4.2pc lower.

Among other fallers, Kuwait’s bourse, opens new tab plummeted 4.pc, with Kuwait Finance House, opens new tab losing 3.7pc. Outside the Gulf, Egypt’s blue-chip index, opens new tab sank 4.6pc, its biggest fall in about 14 months.

Published in Dawn, June 16th, 2025