Stock markets across the Gulf opened Wednesday with a cautious rebound, as investors stepped back into equities after recent losses—though the escalating conflict involving the United States, Israel, and Iran kept risk appetite in check.
Dubai’s market led the recovery. The benchmark index climbed 0.9%, clawing back part of its recent decline. Budget carrier Air Arabia staged the strongest comeback, surging 5.6% and breaking a five-day slide that had erased more than a fifth of its value. Property heavyweight Emaar Properties also contributed to the rebound, gaining 1.2%.
In neighboring Abu Dhabi, the main index rose 0.6%, helped by a 1% advance in Abu Dhabi Commercial Bank.
The modest rally reflected bargain-hunting after several sessions of declines, particularly in real estate and aviation shares. Some investors appeared willing to re-enter the market after last week’s selling frenzy, though sentiment remains fragile.
Regional traders continue to weigh the implications of intensifying hostilities involving the United States and Israel against Iran. The latest round of airstrikes—described by officials as among the most intense since the conflict began—has heightened fears about broader economic fallout.
One of the most pressing concerns is the disruption to the Strait of Hormuz, a maritime corridor responsible for roughly one-fifth of the world’s oil and liquefied natural gas shipments. With the passage effectively shut, some producers have been forced to curb output as storage capacity fills, pushing energy prices sharply higher and injecting fresh volatility into global markets.
Saudi Arabia’s benchmark index edged up 0.4%, supported by gains in Al Rajhi Bank, which rose 0.9%, and energy giant Saudi Aramco, which added 0.6%.
Oil prices, however, softened on Wednesday after reports that the International Energy Agency was considering an unprecedented release of strategic reserves to counter potential supply disruptions.
Even with that pullback, Saudi equities have held relatively steady. Oil prices remain elevated—above $87 per barrel—and the kingdom’s exports continue to move through the Red Sea port of Yanbu, offering an alternative route while shipments through the Strait of Hormuz face pressure.
Elsewhere in the region, Qatar’s market diverged from the broader trend. The benchmark index slid more than 1%, dragged down by a 3% drop in Qatar National Bank, the largest lender in the Gulf by assets.
In Oman, the market inched up 0.2%, extending a powerful rally that has already lifted the index more than 32% this year. Selective buying helped the Muscat market push past technical resistance levels, keeping the index comfortably above the 7,700 mark.
Across the Gulf, the trading mood reflects a delicate balance: bargain hunters returning after steep losses, but with one eye firmly fixed on geopolitical developments that could quickly shift the market’s direction.
