Most Gulf stock markets fell in early trading on Monday, led by losses in Dubai as the Iran conflict weighed on investor sentiment and spurred risk aversion across the region. Over the weekend, Trump threatened further strikes on Iran’s Kharg Island — which accounts for roughly 90% of the country’s oil exports — after earlier attacks on military targets prompted a defiant response from Tehran and raised the prospect of further retaliation. Shortly after the attacks on Kharg, Iranian drones struck a major oil terminal in Fujairah, United Arab Emirates. Although oil loading operations at Fujairah have resumed, four sources said it was unclear whether activity has fully returned to normal. Dubai’s main share index declined 2%, dragged down by a 4% slide in blue-chip developer Emaar Properties and a 1.4% retreat in top lender Emirates NBD . Since the conflict began, the index has shed more than 18%. Gulf equities are showing a growing divergence as the regional conflict drives a swift repricing of risk amid persistently high trading volumes, said Ahmad Assiri Research Strategist at Pepperstone. “While the overarching narrative remains anchored by energy fundamentals, the price action reveals a market at a crossroads where investor conviction is being tested by shifting security dynamics in critical maritime corridors.” In Abu Dhabi, the index lost 1.2%, hit by a 4.6% drop in Aldar Properties. Meanwhile, the bourse’s market capitalization has shrunk to $771.9 billion, down nearly $77.2 billion from pre-conflict levels. Saudi Arabia’s benchmark index eased 0.2%. According to Assiri, Saudi Arabia’s TASI stands out as the region’s clearest dip-buying story, with equities showing notable resilience by testing the key 11,000 level before easing slightly ahead of the Eid holiday. The trading pause could offer a timely breather as global efforts intensify to secure energy routes through the Strait of Hormuz. However, crude prices rose as investor focus returned to threats facing Middle East oil facilities, despite US President Donald Trump’s call for nations to help safeguard the Strait of Hormuz, a vital artery for global energy shipments. The Qatari index fell 0.4%, with the Gulf’s biggest lender by assets Qatar National Bank losing 1.6%. Oman’s index was down 0.7% and Bahrain’s dropped more than 1%.