Qatar: The benchmark index slid 3.2%, with Qatar National Bank down 4.2% and Qatar Gas Transport (Nakilat) falling 3.3% lpl.com+14reuters.com+14brecorder.com+14.
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Saudi Arabia: The Tadawul dipped roughly 1–1.6%, following earlier intraday losses of around 3.6% before rebounding to about 1% lower reuters.com.
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Kuwait: The index saw a sharp 4.6% drop, with Jazeera Airways plummeting 18.4% amid airspace panic reuters.com+1reuters.com+1.
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Other regional markets—including Muscat, Bahrain, and Egypt—also recorded steep declines economictimes.indiatimes.com+15reuters.com+15english.aawsat.com+15.
🔥 What Triggered the Sell-Off
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Israeli Airstrikes on Iran: Targets included Iran’s nuclear facilities, missile factories, and arsenals — aimed at stalling Iran’s nuclear program reuters.com.
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Iranian Retaliation: In response, Iran launched missiles and drones toward Israel and abruptly halted nuclear talks with the U.S. .
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Energy Infrastructure Threats: A key blow came from an Israeli strike on Iran’s South Pars gas field—shared with Qatar—raising alarms over possible disruptions to Gulf energy flows tbsnews.net+15reuters.com+15ft.com+15.
⚠️ Broader Market & Energy Impacts
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Oil: Prices surged ~7% over Friday and into early next week as fears mounted over supply disruptions, especially via the Strait of Hormuz en.wikipedia.org.
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UAE Markets: Dubai’s index plunged ~5.1% and Abu Dhabi ~3.5% on Friday following the initial Israeli strikes on Iranian territory en.wikipedia.org+11reuters.com+11finimize.com+11.
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Safe-Haven Assets: Investors flocked to gold and U.S. Treasuries, while the Israeli shekel weakened 3.5% reuters.com+1businessinsider.com+1.
🛢 Why This Matters
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Regional Stability and Trade: The Gulf’s financial health is closely tied to uninterrupted oil and gas operations. Any attack on energy infrastructure or the Strait of Hormuz could trigger a deeper economic crisis brecorder.com.
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Investor Sentiment: Geopolitical stress consistently triggers Gulf stock declines, tracking a typical ~1% one-day market drop during crises—with deeper losses possible depending on escalation epiccapital.com.
🧭 Outlook & Next Steps
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Geopolitical Tensions: Analysts view the risk of further strikes—particularly on additional energy assets or maritime routes—as high. Iran's threats to close the Strait of Hormuz amplify these concerns en.wikipedia.org+1tbsnews.net+1.
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Oil Prices: Continued escalation could push prices above $80–$100 per barrel, intensifying global inflation fears marketwatch.com.
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Market Recovery: Historically, Gulf markets may rebound in weeks if tensions ease—but a wider conflict could significantly prolong the downturn en.wikipedia.org+12brecorder.com+12english.aawsat.com+12.
📝 Summary
Gulf markets suffered steep losses as Israel and Iran's tit-for-tat strikes heightened fears of a broader regional conflict targeting energy infrastructure. With oil prices already spiking and shipping routes under threat, regional economies and global markets face growing instability. The situation remains fluid, and investors will be closely watching for any military escalation or diplomatic de‑escalation.
