Gulf markets hold steady despite US entry in Israel-Iran war
Gulf stock markets held steady on Sunday after the US struck three nuclear sites in Iran in overnight attacks, escalating the Israel-Iran war that threatens to disrupt energy supplies from the oil-rich region.
Benchmark gauges in Doha, Kuwait advanced while stocks in Bahrain were little changed in early trade. The main index of the bourse in Muscat, however, retreated slightly.
Doha's main stock measure was up 0.88 per cent at 11.05am UAE time while the main market in Kuwait advanced 1.06 per cent, while Bahrain's bourse was 0.04 per cent lower. Muscat bourse's main index slid 0.48 per cent.
" GCC investor sentiment will be shaped by rising geopolitical risk following US airstrikes on Iranian nuclear sites," Iridium Advisor said in a note on Sunday morning.
Investor attention is now centred on the risk of Iranian retaliation, particularly toward US assets, regional energy infrastructure, and maritime routes like the Strait of Hormuz and the Red Sea, it said.
"While broad financial disruption appears unlikely, markets will monitor liquidity conditions. For now, the market impact will hinge more on the nature and timing of Tehran's response than the strikes themselves."
The US military bombed three nuclear sites in Iran, President Donald Trump said on Saturday night, calling the attacks a "spectacular military success".
"Iran's key nuclear enrichment facilities have been completely and totally obliterated," he said.
He also warned of the possibility of further attacks, saying there were "many targets left".
"Iran, the bully of the Middle East, must now make peace. If they do not, future attacks will be far greater and a lot easier."
Iran retaliated on Sunday morning with about 25 missiles, authorities said.
The war, which began on June 13 following air strikes by Israel on Tehran, has rattled investors.
The UAE markets ended higher last week, with the Dubai Financial Market up 1.5 per cent at the close of session and the Abu Dhabi Securities Exchange gaining 0.95 per cent at market close.
Global stocks ended last week on a mixed note, with both the S&P 500 and the Nasdaq composite ending the session on Friday lower, while the Dow Jones Industrial Average closed slightly higher.
In Europe, London's FTSE 100 closed 0.2 per cent lower, while Paris' CAC 40 gained 0.5 per cent. Frankfurt's DAX was up 1.3 per cent.
In Asia, Hong Kong's Hang Seng index edged 1.3 per cent higher and Shanghai's composite was down 0.07 per cent, with Japan's Nikkei down 0.2 per cent.
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Middle East Eye
23 minutes ago
- Middle East Eye
US strikes on Iran: How the world reacted
US forces struck three Iranian nuclear sites on Sunday following mounting pressure from Israeli officials for American intervention. President Donald Trump said US warplanes had "obliterated" the sites and called on Iran to return to the negotiating table. The strikes have sparked international concern, with several countries condemning the attack and urging all sides to halt further escalation. Here's how the world is responding: Iran New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters Iranian Foreign Minister Abbas Araghchi condemned the US strikes, accusing Washington of committing a "grave violation" of the UN Charter, international law and the Nuclear Non-Proliferation Treaty. "The events this morning are outrageous and will have everlasting consequences," Araghchi wrote on X. "Every member of the UN should be alarmed by this extremely dangerous, lawless and criminal behaviour." He added that, under the UN Charter's self-defence provisions, Iran "reserves all options to defend its sovereignty, interests and people". Israel Israeli Prime Minister Benjamin Netanyahu praised Trump for ordering the strikes, calling it a "bold decision" backed by the "awesome and righteous might of the United States". In a video address, Netanyahu said the move would "change history". "History will record that President Trump acted to deny the world's most dangerous regime the world's most dangerous weapons." Qatar Qatar voiced concern over the US strikes, warning of dangerous regional consequences. In a statement, the Qatari foreign ministry said it "regrets the deterioration of the situation" following the bombing and is "following with great concern the developments targeting the sisterly Islamic Republic of Iran". The ministry warned that the current tensions could lead to "catastrophic repercussions" both regionally and internationally. Saudi Arabia Saudi Arabia expressed its "great concern" following the attacks, according to a statement by the foreign ministry on X. "The Kingdom of Saudi Arabia is following with great concern the developments in the sisterly Islamic Republic of Iran, represented by the targeting of Iranian nuclear facilities by the United States of America," the Saudi foreign ministry posted on X. The kingdom "expresses the need to exert all efforts to exercise restraint, de-escalate and avoid escalation", calling on the international community to boost efforts in such "highly sensitive circumstances" to reach a political solution to end the crisis. Oman Oman, which was mediating nuclear talks between the US and Iran, has strongly condemned the US strikes. The Gulf state "expresses deep concern, denunciation and condemnation of the escalation resulting from the direct air strikes launched by the United States on sites in the Islamic Republic of Iran," the official Oman News Agency said. Iraq Iraq has warned the US that attacks on its neighbour Iran threaten peace and stability in the Middle East. "This military escalation constitutes a grave threat to peace and security in the Middle East and poses serious risks to regional stability," government spokesperson Basim Alawadi said. UK British Prime Minister dubbed Iran's nuclear programme a "grave threat to international security" but fell short of condemning Trump's actions. "Iran can never be allowed to develop a nuclear weapon and the US has taken action to alleviate that threat," said Starmer. "The situation in the Middle East is volatile and stability in the region is a priority. We call on Iran to return to the negotiating table and reach a diplomatic solution to end this crisis." European Union The EU's foreign policy chief Kaja Kallas has called for de-escalation and a return to negotiations. "I urge all sides to step back, return to the negotiating table and prevent further escalation," Kallas wrote on X, adding Iran must not be allowed to develop a nuclear weapon and that EU foreign ministers will discuss the situation on Monday. China A flash commentary from China's government-run media asked whether the US is "repeating its Iraq mistake in Iran". The online piece by CGTN, the foreign-language arm of the state broadcaster, said the US strikes mark a dangerous turning point. "History has repeatedly shown that military interventions in the Middle East often produce unintended consequences, including prolonged conflicts and regional destabilisation," it said, citing the American invasion of Iraq in 2003. It said a measured, diplomatic approach that prioritises dialogue over military confrontation offers the best hope for stability in the Middle East. Australia An Australian government spokesperson said Iran's nuclear and ballistic missile programmes pose a threat to international peace and security. "We note the US president's statement that now is the time for peace," the spokesperson said, acknowledging the "highly volatile" security situation in the region. "We continue to call for de-escalation, dialogue and diplomacy," they added. New Zealand New Zealand Foreign Minister Winston Peters said his country is deeply concerned by recent developments, including Trump's announcement of US strikes on Iranian nuclear facilities. "Ongoing military action in the Middle East is extremely worrying, and it is critical that further escalation is avoided," Peters said. He added that New Zealand "strongly supports efforts towards diplomacy" and urged all parties to return to negotiations, noting that "diplomacy will deliver a more enduring resolution than further military action". Mexico Mexico's Ministry of Foreign Affairs has called for urgent diplomatic dialogue amid escalating tensions in the Middle East. "In line with our constitutional principles and Mexico's long-standing commitment to peace, we reiterate our call to de-escalate tensions in the region," the ministry said in a statement posted on X. "The restoration of peaceful coexistence among the states of the region remains our highest priority." Venezuela Venezuelan Foreign Minister Yvan Gil strongly condemned the US air strikes, calling them a dangerous act of aggression. "The Bolivarian Republic of Venezuela firmly and categorically condemns the bombing carried out by the United States military, at the request of the State of Israel, against nuclear facilities in the Islamic Republic of Iran, including the Fordow, Natanz and Isfahan complexes," Gil said in a Telegram post. He urged an immediate cessation of hostilities and warned of the grave consequences of further escalation. Cuba Cuban President Miguel Diaz-Canel strongly condemned the US bombing, saying it constituted a "dangerous escalation" and a serious violation of the UN Charter. He added that it "plunges humanity into a crisis with irreversible consequences".
Khaleej Times
an hour ago
- Khaleej Times
Oil nears $100 as US-Iran escalation fuels market jitters, inflation fears
The US military strike on Iranian nuclear facilities and the widening war in the Middle East have sent fresh shockwaves through global markets, heightening fears of spiralling oil prices, inflationary pressure, and economic disruption. As tensions escalate following Iran's intensified missile attacks on Israel and the sudden US involvement, analysts warn that a full-blown regional conflict could push Brent crude toward the $100 mark, ignite market volatility, and derail the fragile global recovery. India-based maritime analyst and WMC Blue Economy Forum Chairman Nanoo Viswanadhan said the most immediate impact is being felt in the shipping sector. Insurance premiums for ships passing through the Strait of Hormuz — a critical maritime chokepoint between Iran and Oman that sees over 20 per cent of global crude oil flow — have jumped more than 60 per cent since the Iran-Israel conflict erupted. 'The cost of hull and machinery insurance has surged from 0.125 per cent to 0.2 per cent of a vessel's value within days, reflecting heightened risk perceptions,' he said. Market watchers said with oil poised to breach new thresholds and inflation risks resurging, the global economy is entering a new phase of uncertainty. 'Whether this crisis triggers another global economic downturn or a geopolitical reset will depend largely on the next steps taken by Iran, Israel, and the US.' Oil prices have already surged by over 18 per cent since June 10, with Brent touching $79.04 per barrel on Thursday — its highest in nearly five months — before dropping to $75.48 at close on Friday. Energy analysts say a sustained rally past $100 could materialise if Iran retaliates by targeting American interests or Gulf oil infrastructure, or disrupts shipping through the Strait of Hormuz. 'Much depends on Iran's next move, but we are now firmly on the edge of a major oil supply shock,' said Saul Kavonic, senior energy analyst at MST Marquee. 'A targeted disruption in Hormuz could set oil soaring past $100.' The International Monetary Fund, World Bank, and OECD have all lowered their global growth forecasts in recent months, citing inflationary risks and geopolitical tensions. Any significant hike in oil and gas prices, they warn, would exacerbate inflation and force central banks to delay or reverse anticipated interest rate cuts. Bloomberg Economics echoed the concern, stating that the Middle East conflict adds an upward impulse to global inflation, just as supply chains and financial markets are starting to stabilise. Financial markets remain on edge, with investors turning to traditional safe havens such as gold and the US dollar. The S&P 500, after a modest drop in the days following Israel's initial strikes on June 13, has remained flat, while cryptocurrency markets have shown sharper reactions. Ether, seen as a proxy for retail investor sentiment, fell 5 per cent on Sunday, bringing its total losses since June 13 to 13 per cent. Investor sentiment is clouded by uncertainty, with many bracing for volatility. 'Markets will be alarmed in the short term. Oil will open higher, and there will be a knee-jerk flight to safety,' said Mark Spindel, CIO of Potomac River Capital. 'We don't yet know the full extent of the damage or Iran's next move. The risk premium is back in global markets.' Steve Sosnick, chief market strategist at IBKR, said the dollar could gain strength amid global anxiety. 'If markets flee to safety, we will see bond yields dip and the dollar strengthen. But equities could react sharply depending on how much further Iran is willing to escalate.' Jamie Cox of Harris Financial Group struck a cautious note of optimism, suggesting that the display of US military might may lead Iran to seek a diplomatic off-ramp. 'With its nuclear capability neutralised, Iran has lost leverage. There's a possibility that they now opt for a face-saving peace deal,' he said. Historically, Middle East crises have prompted temporary market corrections, followed by rebounds. During the 2003 Iraq invasion and 2019 Saudi oil facility attacks, the S&P 500 initially dipped but recovered within months. According to Wedbush Securities and CapIQ Pro, the index was on average 2.3 per cent higher two months after major conflicts began.
UAE Moments
an hour ago
- UAE Moments
US Bombs Iran Nuclear Sites: What We Know About the Strikes
In a dramatic military escalation, the United States has launched airstrikes on three of Iran's key nuclear facilities, claiming a 'successful' attack that allegedly left the sites 'completely obliterated,' according to President Donald Trump. The strikes—which targeted Fordo, Natanz, and Isfahan—come amid ongoing conflict between Iran and Israel. Israeli officials confirmed they were 'in full coordination' with the US on the mission, while Iran acknowledged the strikes but denied suffering any significant damage. What was targeted? The primary target was Fordo, an underground uranium enrichment site located deep within a mountainside south of Tehran. It's a vital component of Iran's nuclear program and is known for being heavily fortified. Also hit were the Natanz and Isfahan nuclear facilities. According to US media, the strikes employed GBU-57 Massive Ordnance Penetrators (MOPs)—nicknamed 'bunker busters'—which are designed to penetrate deep underground. Each MOP weighs about 13,000kg and can smash through up to 18 meters of concrete or 61 meters of earth. While it's unclear how much damage was inflicted, Fordo's reinforced tunnels may have made it a tough nut to crack—even for the MOP. Fallout and responses Iran's Atomic Energy Organization slammed the attacks as a 'barbaric violation of international law,' while Saudi Arabia and the UN nuclear watchdog reported no spikes in radiation levels. Iranian state media claimed that the nuclear materials had already been moved from the sites prior to the attack, minimizing the impact. 'We didn't suffer a major blow,' said Hassan Abedini, deputy political director of Iran's state-run broadcaster. Still, Trump declared the sites 'completely and totally obliterated' in a national address—though military experts, including former US Assistant Secretary of State Mark Kimmitt, expressed skepticism about the long-term effectiveness of the strikes. Iran's foreign minister Abbas Araghchi issued a stern warning, saying the country would consider 'all options' in retaliation, and that the US should brace for 'everlasting consequences.' This move marks a bold—and highly controversial—shift in the ongoing power struggle in the region.
