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Most Gulf markets fell in early Monday trading, led by sharp losses in the UAE, as the U.S.-Israeli war with Iran continuedand oil prices jumped more than 15% on supply cuts and fears of prolonged Strait of Hormuz shipping disruptions.
U.S. President Donald Trump said on Saturday he was not interested in negotiations with Iran and suggested the war would end only when Iran no longer had a functioning military or leadership in power.
Further dousing hopes for peace, Iran on Monday designated Mojtaba Khamenei as supreme leader to succeed his father Ali Khamenei, signalling that hardliners continue to dominate power.
Brent crude was up $14.73, or 15.8%, at $107.39 per barrel at around 0800 GMT - on track for its biggest-ever jump in a single day.
Energy markets are particularly nervous because the crisis is unfolding around the Strait of Hormuz, through which roughly one-fifth of the world's oil supply normally passes.
Dubai's main share index dropped 3.8%, with blue-chip developer Emaar Properties falling 4.7% and toll operator Salik down 4.9%.
Air Arabia slumped 5%.
In Abu Dhabi, the index retreated 1.8%, hit by a 4.9% slide in Abu Dhabi Commercial Bank and a 1.5% decline in ADNOC Gas.
Abu Dhabi National Oil Company said on Saturday it was managing offshore output levels to address storage requirements amid the war, while its onshore operations were continuing.
Saudi Arabia's benchmark index eased 0.3%, with Al Rajhi Bank losing 1.1% and Saudi Arabian Mining Company dropping 1.5%.
Budget airline flynas was down 0.6%, but oil giant Saudi Aramco advanced 1.3%.
Higher oil prices could boost revenues for Saudi Arabia, the UAE, and other Gulf Cooperation Council producers, supporting budgets and local economies if elevated levels persist, said Daniel Takieddine, co-founder and CEO, Sky Links Capital Group.
However, disruptions in the Strait of Hormuz may cap the upside by slowing shipments and curbing output, though the UAE and Saudi Arabia remain relatively better positioned thanks to pipeline infrastructure that allows part of their crude exports to continue, added Takieddine.
The Qatari index lost 2.5%, with almost all of its constituents in negative territory, including the Gulf's biggest lender by assets, Qatar National Bank, which fell 2.4%.
Elsewhere, Bahrain's bourse declined 0.7%, while Kuwait's edged up 0.2%, and Oman's gained 2.3%.
(Reporting by Ateeq Shariff in Bengaluru. Editing by Rashmi Aich and Mark Potter)





















