Most Gulf equities ended lower on Sunday as the U.S.-Israeli war on Iran entered its third week with U.S. President Donald Trump threatening further strikes on the Kharg Island oil export hub and Tehran vowing to intensify its response.
Iranian drone and missile strikes have hit airports, hotels, ports and military and oil installations across the region, exacting an economic and military toll on nearby Gulf states.
Saudi Arabia’s benchmark index eased 0.1%, with the country’s biggest lender Saudi National Bank retreating 1.3%.
However, oil major Saudi Aramco gained 0.7%.
Crude futures rose on Friday as the strait remained closed.
READ MORE: UAE stocks extend loss as Mid-east conflict lingers
The Trump administration has rebuffed efforts by Middle Eastern allies to launch diplomatic negotiations aimed at ending the war with Iran, three sources familiar with the matter said.
The U.S. president also called on allies to deploy warships to help secure the Strait of Hormuz, a vital route for global energy supplies, as Tehran vowed to escalate its response.
In another sign of the economic fallout from the conflict, Formula One’s Bahrain and Saudi Arabian Grand Prix will not take place in April, the sport announced on Saturday.
The Qatari index fell 0.2%, with the Gulf’s biggest lender by assets Qatar National Bank retreating 1.3%.
Bahrain’s index eased 0.5%, while Kuwait’s was down 0.1%.
Elsewhere, Oman’s index lost 0.4%.
The U.S. State Department said on Saturday that it had directed non-essential government personnel and the family members of government employees to leave Oman due to safety concerns amid the ongoing conflict.
Outside the Gulf, Egypt’s blue-chip index declined 1.9%, dragged down by a 2.6% slide in Commercial International Bank .
Saudi Arabia slipped 0.1% to 10,887
Qatar eased 0.2% to 10,461
Egypt declined 1.9% to 45,927
Bahrain was down 0.5% to 1,939
Oman lost 0.4% to 7,705
Kuwait fell 0.1% to 9,178
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