Gulf equities mixed as US‑Iran tensions and shipping attacks raise regional risk
Escalating US‑Iran friction and recent attacks on maritime infrastructure caused mixed moves in Gulf markets, pressuring oil‑related stocks and raising risk for Pakistani investors.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
Oil & Gas sector faces heightened risk from regional tensions, leading to a negative bias – avoid buying related PSX stocks.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- Oil & GasNegatively affected
- BanksNegatively affected
Companies
Companies Mentioned
- OGDC· Negatively affected · Do not buy
Mentions in This Briefing
Sectors: Oil & Gas, Banks — Negative · Do not buy. PSX tickers: OGDC. Oil & Gas sector faces heightened risk from regional tensions, leading to a negative bias – avoid buying related PSX stocks.
Full Story
Open on Business Recorder## Market Overview
Gulf stock markets showed divergent performance on Monday amid heightened US‑Iran tensions and fresh attacks on shipping routes. The Saudi benchmark slipped 0.4%, while Dubai’s main index rose 0.8%.
## Saudi Market Details
The Saudi index was pulled down by a 0.5% decline in Al Rajhi Bank and a 0.2% dip in oil giant Saudi Aramco. Saudi Ground Services Co fell 7% after airline flynas announced it would end its ground‑handling contract from March 2027. Yanbu National Petrochemical Co dropped 4.1% as it traded ex‑dividend.
## UAE Market Highlights
In the UAE, the Dubai index gained 1.3% on the strength of developer Emaar Properties, offsetting broader regional uncertainty.
## Geopolitical Context
Iran warned that its regional energy infrastructure remains “sprawling, accessible, and exposed” to retaliation after US strikes. The Financial Times reported an attack on Aramco’s Jazan refinery, with damage still being assessed. Analysts noted that Gulf equities will stay sensitive to developments in the Strait of Hormuz, especially any disruption to oil shipments.
## Outlook for Investors
Experts said de‑escalation could limit downside, but an unclear diplomatic timeline means caution will dominate market sentiment. UAE presidential adviser Anwar Gargash warned that rebuilding trust over shipping routes could take decades, underscoring the long‑term risk to energy exports.
## Regional Spill‑over
Outside the Gulf, Egypt’s blue‑chip index slipped 0.1%, led by a 1.4% fall in Commercial International Bank Egypt.