Business Recorder

Major Gulf markets drop amid fresh Middle East tensions

Stock markets in the United Arab Emirates declined in early Monday trading as renewed conflict in the Middle East dampened investor sentiment. Explosions were reported in Tehran, Tabriz and Isfahan early on Monday, according to local media, clouding hopes for a near-term end to the broader conflict. Still, after Iran fired a salvo of missiles at Israeli targets on Sunday in retaliation for an attack near Beirut, U.S. President Donald Trump said a deal to end the war remained within reach. He also reportedly urged Israeli Prime Minister Benjamin Netanyahu to avoid further strikes. Dubai’s main share index dropped 1.3%, hit by a 1.2% slide in blue-chip developer Emaar Properties and a 1.6% decline in toll operator Salik. Iran has long maintained that any agreement with Washington would depend on a ceasefire in Lebanon, where Israel launched an invasion in March against Iran-backed Hezbollah fighters after cross-border rocket and drone attacks carried out in support of Tehran. However, Israel struck the Beirut area again earlier on Sunday, marking its first attack there since the United States unveiled a truce proposal for Lebanon last week. In Abu Dhabi, the index retreated 0.9%, with conglomerate International Holding  losing 0.6% and the country’s biggest lender First Abu Dhabi Bank  falling 1.3%. The Qatari index was down 0.9%, with the Gulf’s biggest lender Qatar National Bank  dropping 1.1%. Saudi Arabia’s benchmark index edged 0.1% lower, with Al Rajhi Bank  shedding 0.5%. On the other hand, oil major Saudi Aramco gained 0.7% on the back of the latest oil price rise. Benchmark Brent crude futures rose $4.42 or 4.47% to $97.15 a barrel as of 0609 GMT.