Gulf bourses slip as US‑Iran tensions spike oil prices
Escalating US‑Iran hostilities pushed Brent crude above $104 a barrel, prompting Gulf stock indices to fall and raising concerns over energy‑trade routes.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
Rising oil prices and regional tension hurt Pakistan's economy and banks; avoid exposure, watch energy stocks.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- Oil & GasNegatively affected
- BanksNegatively affected
- EconomyNegatively affected
Companies
Mentions in This Briefing
Sectors: Oil & Gas, Banks, Economy — Negative · Do not buy. PSX tickers: OGDC, HUBC. Rising oil prices and regional tension hurt Pakistan's economy and banks; avoid exposure, watch energy stocks.
Full Story
Open on Business Recorder## Gulf markets react to heightened US‑Iran conflict
Most Gulf stock exchanges closed lower on Thursday after the United States and Iran intensified their maritime confrontation. Iran attacked ten vessels near the Strait of Hormuz following a U.S. operation that sank five Iranian tankers. President Donald Trump warned Tehran of possible strikes on its Pickaxe Mountain facility.
## Energy‑trade corridor under pressure
The Strait of Hormuz, a critical chokepoint for global oil shipments, faced renewed threat, while Houthi missile and drone attacks on Saudi cities added risk to alternative Red Sea routes. These developments lifted Brent crude futures by $3.58, or 3.51%, to $104.79 a barrel by early afternoon GMT.
## Gulf equity indices decline
Saudi Arabia’s benchmark index slipped 0.1%, dragged by a 1.1% fall in Saudi Arabian Mining Company, though oil giant Saudi Aramco rose 0.4%. Dubai’s main index fell 0.4%, with developer Emaar Properties down 0.7%. Qatar’s index lost 0.3%, led by a 1.4% retreat in Qatar National Bank. The broader GCC sentiment remains cautious, according to George Pavel of Naga.com Middle East, who highlighted the lingering uncertainty over Oman‑Iran negotiations and the risk of prolonged maritime disruptions.
## Implications for Pakistan
Higher oil prices and the prospect of shipping disruptions raise import costs for Pakistan, pressuring inflation and the balance of payments. Energy‑related companies may see short‑term revenue gains, but broader market sentiment could turn risk‑averse, affecting banks and other sectors sensitive to macro‑economic volatility.