MIDEAST STOCKS-Gulf bourses retreat as US–Iran hostilities intensify

Tadawul All Shares Index

Tadawul All Shares Index

TASI.SA

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By Ateeq Shariff

- Most Gulf stock markets fell on Sunday as escalating U.S.–Iran attacks across the region stoked inflation concerns and strengthened expectations of further U.S. interest-rate hikes.

The United States said it had carried out an eighth consecutive night of strikes on Iran, after earlier reporting that two American service members were killed in Jordan and another was missing following an Iranian attack.

Kuwait, which faced sustained Iranian attacks on Saturday, intercepted more Iranian missiles and drones on Sunday, its army said. Bahrain's air defences also downed an Iranian attack the same day, according to state TV.

The escalation comes after an interim ceasefire reached a month ago collapsed last week, heightening fears of a renewed slide into all-out war.

Qatar's stock market index .QSI retreated 1.5%, dragged down by a 3% slide in the Gulf's biggest lender by assets, Qatar National Bank QNBK.QA. Qatar Gas Transport QGTS.QA also fell 2%.

Qatar's defence ministry said its forces foiled an Iranian missile attack early on Friday, while the interior ministry reported a child was injured by shrapnel from the interception.

Saudi Arabia's benchmark index .TASI closed flat, with oil major Saudi Aramco 2222.SE rising 0.6%.

Since the war began, the kingdom has rerouted over 70% of its usual daily crude exports to the Red Sea port of Yanbu. Shipments from Yanbu have averaged 4 million barrels per day in recent weeks, compared with about 973,000 bpd a year earlier.

On Friday, oil prices climbed more than 4% to their highest in more than a month.

Elsewhere, Bahrain's index .BAX was down 1.2% and Kuwait's .BKP fell 0.4%.

Outside the Gulf, Egypt's blue-chip index .EGX30 fell 0.7%.

Saudi Arabia

.TASI finished flat at 10,717

Qatar

.QSI retreated 1.5% to 9,955

Egypt

.EGX30 was down 0.7% to 52,560

Bahrain

.BAX closed 1.2% lower to 1,962

Oman

.MSX30 declined 1% to 7,407

Kuwait

.BKP dropped 0.4% to 9,036