Gulf markets fell on Sunday amid mounting fears of an Iran conflict, as investors reacted to rising geopolitical tensions across the Middle East. Early trading saw several regional indices decline following fresh developments linked to the ongoing crisis.
Sentiment weakened after Yemen’s Houthi movement launched new attacks on Israel, while the United States deployed additional forces to the region. The moves deepened concerns over a broader escalation that could disrupt trade and energy flows.
Reports suggest the Pentagon is preparing for a possible multi‑week ground operation in Iran, although it remains unclear whether President Donald Trump will authorise such action. The uncertainty has added pressure on financial markets, with investors increasingly wary of prolonged instability.
Most Gulf stock markets closed lower. Qatar’s index shed 1.1%, dragged down by a 1.3% decline in Qatar National Bank, the region’s largest lender by assets. Kuwait’s market slipped 0.4%, while Bahrain’s benchmark edged down 0.1%, reflecting a wider pullback across the region.
Saudi Arabia’s main index moved against the broader trend, rising 0.4% as banking and energy stocks provided support. Al Rajhi Bank gained 0.4%, and oil giant Saudi Aramco advanced 0.6%, helping to offset weakness elsewhere in the Gulf.
Oil markets reacted strongly to the escalating tensions. Brent crude futures jumped by $4.56, or 4.2%, reaching $112.57 per barrel. The increase reflects scepticism about the chances of a near-term ceasefire in the month-long Iran conflict.
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Saudi Arabia continues to maintain oil supply stability. Reports indicate that the East-West pipeline is operating at full capacity of 7 million barrels per day. This pipeline allows oil to be transported without passing through the Strait of Hormuz, a key chokepoint in global energy supply.
The decline in Gulf markets highlights growing investor concern over geopolitical risks. As tensions rise, markets remain sensitive to further developments. Analysts expect continued volatility if the conflict expands or disrupts global oil supply chains.
