KUWAIT CITY, July 15: Saudi and Gulf stock markets dived sharply at the start of weekly trading Saturday on concerns over escalating tension in the Middle East, an analyst said.The Saudi market, the largest in the Arab world, shed 7.5 per cent at the close of morning trading as the Tadawul All-Shares Index (TASI) finished the session below the 11,000-point mark at 10,980.44.

The TASI has so far shed 34.3 per cent since the start of the year. The drop comes after weeks of healthy gains following a plunge due to correction pressure.

The major reason for today's drop in Gulf markets is the result of concerns from the implications of the Israeli aggression on Lebanon and the Palestinian territories, Kuwaiti economist Hajjaj Bukhdour told AFP.

Kuwait Stock Exchange (KSE) Index dropped 3.3 per cent to close the day's trading at 9,605.30.

Dubai Financial Market Index fell 2.75 per cent to finish at 417.07, close to a two-year low.

Abu Dhabi Securities Market also slid one per cent to close at 3,500.32.

The other Gulf markets of Qatar, Oman and Bahrain are closed on Saturday.—AFP