Stock markets across much of the Gulf opened Thursday on the back foot as intensifying regional tensions stirred fresh anxiety among investors, dragging several major indexes into the red. Dubai’s benchmark led the retreat, weighed down by steep declines in key blue-chip stocks.
Dubai’s main index slipped 2.8% in early trading. Property heavyweight Emaar Properties dropped 4.9%, while banking giant Emirates NBD fell 3.5%, amplifying the market’s downward momentum.
The selloff followed escalating security concerns across the Middle East. Iranian officials warned global oil markets could face a dramatic surge in prices, suggesting crude might climb as high as $200 a barrel after attacks targeted commercial vessels and key infrastructure in the region.
Energy watchdogs are already bracing for turbulence. The International Energy Agency has urged governments to consider releasing strategic oil reserves to soften the blow of a potential supply shock—one that could rival the severe disruptions seen during the 1970s energy crisis.
Tensions have spilled into maritime routes as well. A projectile struck a container ship about 35 nautical miles north of Jebel Ali in the United Arab Emirates, sparking a small onboard fire, according to the United Kingdom Maritime Trade Operations. Separately, authorities in Dubai reported a drone falling onto a building near Dubai Creek Harbour.
In Abu Dhabi, equities followed Dubai’s downward path. The emirate’s main index lost 1.7%, pressured by a 4% slide in Aldar Properties and a 5% drop in Abu Dhabi Commercial Bank.
Global lenders operating in the region have begun taking precautionary steps. Some banks have instructed staff in Dubai to work remotely while reviewing office security, reflecting concerns over threats directed at financial institutions linked to Western interests.
Elsewhere in the Gulf, Qatar’s index slipped 0.8%, dragged lower by a 1.5% decline in Qatar National Bank, the region’s largest lender by assets.
Saudi Arabia was the lone bright spot. Its benchmark index edged 0.2% higher, supported by a modest 1% rise in energy giant Saudi Aramco.
Meanwhile, oil markets surged as traders reacted to the rising geopolitical risk. Brent crude futures jumped $8.54, climbing 9.28% to $100.52 a barrel in early trading.
Security alerts continued to ripple across the energy sector. Saudi Arabia’s defence ministry said it intercepted a drone heading toward the Shaybah oilfield—one of several such incidents reported the same day—highlighting the mounting risks facing the region’s vital oil infrastructure.
