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Most major stock markets in the Gulf fell in early trade on Thursday, with the Dubai index leading losses as Iran escalated attacks on oil and transport infrastructure across the Middle East, fuelling concern over a potentially prolonged conflict.
Iran said the world should be ready for oil priced at $200 a barrel after its forces attacked merchant vessels on Wednesday. Meanwhile, the International Energy Agency called for large-scale release of strategic reserves to cushion what could become one of the worst oil shocks since the 1970s.
Dubai's main share index declined 2.8%, hit by declines of 4.9% in blue-chip developer Emaar Properties and 3.5% in top lender Emirates NBD.
Iran said it would target U.S.- and Israel-linked economic and banking interests in the region after an attack on an Iranian bank, a Tehran military spokesperson said Wednesday.
A projectile struck a container ship, causing a small fire, 35 nautical miles north of Jebel Ali in the United Arab Emirates, the United Kingdom Maritime Trade Operations (UKMTO) said on Thursday.
Dubai authorities said a drone fell onto a building near Dubai Creek Harbour.
In Abu Dhabi, the index dropped 1.7%, with Aldar Properties losing 4% and Abu Dhabi Commercial Bank declining 5%.
Citigroup and Standard Chartered have told Dubai staff to work from home after beginning office evacuations, Reuters reported on Wednesday, citing sources, as banks respond to Iranian threats against Gulf banking interests tied to the U.S. and Israel.
The Qatari index lost 0.8%, with the Gulf's biggest lender by assets Qatar National Bank falling 1.5%.
Saudi Arabia's benchmark index edged 0.2% higher, helped by a 1% rise in oil behemoth Saudi Aramco.
Brent futures were up $8.54, or 9.28%, to $100.52 a barrel as at 0354 GMT.
Saudi Arabia's defence ministry said on Thursday it intercepted a drone heading toward the Shaybah oilfield, in the third such incident reported on the same day.
(Reporting by Ateeq Shariff in Bengaluru; Editing by Janane Venkatraman and Christopher Cushing)
