Mideast Stocks: Most Gulf markets retreat on geopolitical tensions

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Most stock markets in the Gulf ended lower on Wednesday amid escalating geopolitical tensions in the region after Israeli airstrikes in Gaza killed over 400 people, disrupting nearly two months of relative peace since the ceasefire began. Palestinian militant group Hamas and Israel accused each other of breaching the truce. It had broadly held since January and offered respite from war for the 2.3 million inhabitants of Gaza, which has been reduced to rubble.

Egypt and Qatar, the mediators in the ceasefire deal along with the U.S., condemned the Israeli assault, while the European Union, in a statement, deplored the breakdown of the ceasefire. Saudi Arabia's benchmark index dropped 0.7%, with oil giant Saudi Aramco falling 2.2% and Saudi Arabian Mining Company losing 2.8%. Elsewhere, Sahara International Petrochemical Company was down 3%, after the firm missed its annual profit estimates.

Oil prices approaching recent lows further intensified pressure on the market, said Hani Abuagla Senior Market Analyst at XTB MENA.

"Saudi equities are expected to remain vulnerable to both external factors and fluctuating oil prices in the near term." Oil prices fell after Russia agreed to U.S. President Donald Trump's proposal that Moscow and Kyiv temporarily stop attacking each other's energy infrastructure, a move that could eventually pave the way for Russian oil to enter global markets. Dubai's main share index slipped 0.6%, hit by a 3.7% slide in top lender Emirates NBD and a 0.4% decrease in blue-chip developer Emaar Properties. In Abu Dhabi, the index finished 0.3% lower.

The Qatari index declined 0.7%, with the Gulf's biggest lender Qatar National Bank losing 1.7%, while Qatar International Islamic Bank retreated 3% on trading ex-dividend.

Outside the Gulf, Egypt's blue-chip index concluded 0.8% lower, as most of its constituents were in negative territory including Talaat Moustafa Group Holding, which was down 1.5%.