Most Gulf markets in red as Israel-Iran conflict escalates

June 18 (Reuters) - Most stock markets in the Gulf ended lower on Wednesday with investors exercising restraint due to fighting between Iran and Israel that entered a sixth day, sparking fears of potential regional instability.
Iran's Supreme Leader Ayatollah Ali Khamenei rejected U.S. President Donald Trump's demand for unconditional surrender on Wednesday, as Iranians jammed the highways out of Tehran fleeing from intensified Israeli airstrikes.
Saudi Arabia's benchmark index (.TASI), opens new tab declined 1.2%, weighed down by a 3.3% slide in ACWA Power Company (2082.SE), opens new tab and a 2% drop in Saudi Arabian Mining Company (1211.SE), opens new tab.
Among other losers, Prince Waleed bin Talal-backed airline Flynas Company (4264.SE), opens new tab closed 3.4% lower in debut trade.
Elsewhere, oil giant Saudi Aramco (2222.SE), opens new tab eased 0.3%.
Additionally, investor uncertainty surrounding today's U.S. Federal Reserve meeting is contributing to the cautious mood, with most market participants expecting the central bank to hold interest rates steady, said Joseph Dahrieh, managing principal at Tickmill.
Dubai's main share index (.DFMGI), opens new tab finished 1.2% lower, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab losing 1.2%.
In Abu Dhabi, the index (.FTFADGI), opens new tab was down 0.4%.
Oil prices steadied, after a gain of 4% in the previous session, as markets weighed up the chance of supply disruptions from the Iran-Israel conflict and as they ponder a direct U.S. involvement.
The Qatari index (.QSI), opens new tab lost 0.6%, with Qatar Gas Transport Nakilat (QGTS.QA), opens new tab falling 3.8%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab added 0.4%, helped by a 4.1% jump in Fawry for Banking Technology and Electronic Payment (FWRY.CA), opens new tab.

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EXCLUSIVE Michelle Mone's £250 million Dubai property project was never finished and is now just a desert shell

's £250 million Dubai property project – hailed as the first major development to be sold using Bitcoin – was never actually built, The Mail on Sunday can reveal. In 2017, former lingerie tycoon Ms Mone, 53 – dubbed Baroness Bra after being awarded a peerage – and husband Doug Barrowman, 60, unveiled proposals to erect two 40-floor skyscrapers as part of a luxury desert complex boasting high-end homes, a shopping centre and sports facilities. To much fanfare, they said the apartments could be bought using virtual currency rather than hard cash. Within months they claimed that buyers had already invested in 'a number of apartments' using the crypto tokens. Ms Mone even told an American news network that Bitcoin (BTC) was 'the currency of the future', adding: 'I'm a Baroness – so I wouldn't be getting involved in it if it was a kind of 'dodgy' industry.' Yet Dubai government records show that the couple's Aston Plaza and Residences, located in the Science Park district of the Middle Eastern city, were never actually built. A property inspection report carried out by the Dubai Real Estate Regulatory Agency and obtained by The Mail on Sunday confirms that the project started but was later 'cancelled' at just 32 per cent completion. Pictures taken by inspectors who visited the site in January 2018 show the concrete shell of one mega tower abandoned in the middle of the desert. The images are a far cry from the promotional mock-ups that were advertised on the project's website, which showed sleek, minimalist homes set across two glass tower blocks. The revelation comes after the UK Government told the High Court in London recently that a company linked to Ms Mone and Mr Barrowman should pay back more than £121 million for breaching a Covid contract for 25 million surgical gowns. And earlier this month we told how the couple from Glasgow were offloading some of their British property empire as they look to start a new life in Florida. The Aston Plaza and Residences promised to offer 'exceptional real estate for discerning professionals and young families living in the United Arab Emirates', adding that the 'company's ethos is delivered through its meticulous attention to detail when creating homes'. A press release put out by the Aston team said that the project was the 'first joint business venture between the two business icons' Ms Mone and her husband, who is chairman of the Knox group of companies. According to the development's website, 150 apartments were available to buy directly from the developers using Bitcoin, a digital currency that fluctuates in value depending on market sentiment. It continued: 'The highly-anticipated selection of 1,133 studio, one and two bedroom apartments, is due for completion in summer 2019. 'Apartments offer floor-to-ceiling windows with unobstructed views of the Dubai Hills and the iconic city skyline.' The website added: 'The development also boasts the Plaza – three floors dedicated to retail which will include boutiques, cafes, restaurants and a supermarket.' Studio apartments started at 33BTC, which is the equivalent of almost £3 million if linked to today's sterling markets. Speaking to The Mail on Sunday in December 2017, Ms Mone, who founded the Ultimo lingerie brand, said she had already sold 'a number of apartments' to buyers using the cryptocurrency. Aston Towers, known as Project 152 in property databases, is listed as 'permanently closed' on Google. Records show that although the project was transferred to a different Dubai-based company around 2019, work on the development continues to be 'cancelled'. The Mail on Sunday recently told how Ms Mone and Mr Barrowman had sold two townhouses in Glasgow to celebrity friends in the last 12 months, pocketing a profit of £2 million. The new owners are Nick Haddow, the photographer who shot one of Ms Mone's most risqué Ultimo push-up bra campaigns, and Paul McManus – the drummer in Scots rock band Gun and a high-profile Scottish Labour Party donor. Meanwhile, a quaint Chelsea mews house in London linked to a company of Ms Mone's son Declan has been sold for £2.185 million to a senior member of a Middle Eastern royal family. Last year the couple also sold their £19 million London townhouse as well as their £6.8 million Lady M yacht. Ms Mone's friends say she has told them that she is seeking to start afresh in Miami. The Scots business moguls are currently at the centre of an anti-corruption PPE fraud probe which saw £75 million of their assets frozen by the National Crime Agency. Investigators are focused on PPE Medpro, a company led by Mr Barrowman, which was placed in a VIP priority lane for government contracts worth £203 million of taxpayers' money following a recommendation by Ms Mone. This came after Ms Mone was made a peer by Prime Minister David Cameron in 2015. The Department of Health and Social Care (DHSC) is suing PPE Medpro over claims that surgical gowns supplied by the firm were not fit for use. On June 11, Paul Stanley, KC, for the DHSC, told the High Court: 'The Government is seeking to recover the costs of the contract, as well as the costs of transporting and storing the items, which amount to an additional £8,648,691.' The Dubai property project was sold on to a Dubai-based developer. Representatives for Ms Mone and Mr Barrowman said that no one lost any money and all deposits were held in escrow, in accordance with the law in Dubai.

Reuters

a day ago

• Reuters

Head of Russia's Rosneft says OPEC+ could speed up oil output hikes by a year

ST PETERSBURG, Russia, June 21 (Reuters) - OPEC+ group of leading global oil producers could bring forward its output hikes by around a year from the initial plan, Igor Sechin, head of Russia's largest oil producer Rosneft ( opens new tab, said on Saturday. He also said that the decision by the OPEC+ to speed up output increase now looked far-sighted and justified in the light of the confrontation between Israel and Iran. The Organization of the Petroleum Exporting Countries and its allies, led by Russia, shocked oil markets in April by agreeing a bigger-than-expected output hike for May despite weak prices and slowing demand. OPEC+ has since decided to continue with more than planned hikes. "The announced increase in production since May of this year is three times higher than the alliance's initial plan. In addition, the entire increase in OPEC+ production could be shifted a year ahead of plan," he said without elaborating. "The decision taken by OPEC leaders to forcefully increase production looks very far-sighted today and, from the market's point of view, justified, taking into account the interests of consumers in light of the uncertainty regarding the scale of the Iran-Israel conflict," he added. OPEC+ crude output represents about 41% of global oil production. The group's main objective is to regulate the supply of oil to the global market. Having spent years curbing production, eight OPEC+ countries made a modest output increase in April before tripling it for May, June and now July. Besides the 2.2 million bpd cut that the eight members started to unwind in April, OPEC+ has two other layers of cuts that are expected to remain in place until the end of 2026. Oil prices had initially fallen in response to the OPEC+ decision to increase oil production, but the outbreak of an aerial war between Israel and Iran has so far been the main factor behind their return to around $75 per barrel, levels unseen since the start of the year. Speaking at the St. Petersburg International Economic Forum, Sechin, a long-standing ally of Russian President Vladimir Putin, also said there will be no oil glut long-term despite the production rise due to low stockpile levels, though rising usage of electric vehicles in China might hit oil demand. Putin said on Friday he shared OPEC's assessment that demand for oil will remain high. He also said that oil prices had not risen significantly due to the conflict between Iran and Israel, and that there was no need for OPEC+ to intervene in oil markets. Sechin also said Rosneft had already budgeted the oil price of $45 per barrel for this year, the level the European Union eyes as the new price cap on Russian oil imports, which is now set at $60. ($1 = 0.8679 euros)

Telegraph

a day ago

• Telegraph

Israeli tech giant delays £300m City float as Iran conflict escalates

An Israeli technology business has delayed plans to list on the London Stock Exchange after escalating tensions in Iran rocked global markets. Waves, which specialises in audio software, is now hoping to float the business by October, having previously aimed for as early as this month. It marks a fresh setback for the beleaguered stock market, as the Tel Aviv-based company's planned £300m deal has been one of the few listings poised to take place in London. Bankers at Panmure Liberum are still working on the deal, although they have pushed back the completion date while market conditions remain challenging. Israel's conflict with Iran has also contributed to the decision, as geopolitical volatility has rattled traders around the world. Oil prices have surged in response to the conflict, while gold has edged close to a fresh record high as investors seek safe haven assets. Stock markets have largely shrugged off the war since the initial strikes carried out by Israel, but investors remain nervous about the prospect of US involvement. Waves, which was set up in 1992 and employs more than 200 people, sells its audio software technology globally. Details of its proposed listing first emerged this year, when it was reported that bosses were assembling a board that could smooth Waves's transition to a public company. Gavin Patterson, the former BT chairman, has been sounded out as a potential candidate to chair the business. Eventual completion of the deal will provide the Square Mile with a rare boost as it battles a dearth of new listings and an exodus of existing companies. Pressure on the London Stock Exchange has also intensified in recent weeks after a string of tech companies announced plans to leave the market or seek listings elsewhere. This includes British fintech champion Wise, which confirmed this month that it plans to move its main listing to New York. Charles Hall, of Peel Hunt, said this month: 'Urgent action is required if we want a healthy UK equity market that supports our listed companies and encourages the next generation of companies to list.' Last month, the US private equity billionaire Orlando Bravo also claimed the London stock market was in need of 'major' reforms to be able to compete internationally.