Gulf Equities Under Pressure Amid Israel-Iran Conflict
While the price of oil rallied in reaction to the Israeli attack on nuclear and military facilities in Iran, Gulf Arab stocks posted losses across the board.
Written by Gérard Al-Fil, Dubai
The Dubai Financial Markets (DFM) shed over 4 percent in early Friday trading, while its sister market ADX in Abu Dhabi opened 3.5 percent lower. Nearly all shares opened in the red as buyers remained on the sidelines, awaiting the development in the dangerous escalation between the Islamic Republic of Iran and Israel on the night of June 12. Only Gulfnavigation, a maritime shipping supplier, was the sole gainer at the DFM.
Financial shares of the United Arab Emirates (UAE) in particular dropped in value.
The UAE adapted in 2022 to the Western workweek, which means stock markets are open from Monday to Friday.
Saudi Markets Closed
The Saudi Arabian Tadawul market remains closed on Fridays, the Islamic public weekend, like the stock exchanges in Kuwait, Bahrain, Qatar and Oman.
Oil on 3-Month High
The price of oil (Brent) jumped 10 percent to a near 3-month high, hovering around $75 per barrel, as markets awaited the reaction of Iran to Israeli aerial attacks on its nuclear energy and research sites and on members of the Iranian Islamic Revolutionary Guards. Israeli media reported early Friday that Iran launched over 100 military drones at Israeli targets.
