Stock markets across the Gulf demonstrated notable resilience on Sunday despite heightened geopolitical tensions following U.S. military strikes on Iran’s key nuclear sites. These developments, which marked a sharp escalation in the region, appeared to have limited immediate impact on investor sentiment. While fears of economic fallout loomed, the markets remained largely stable, with many indices posting gains by mid-morning.
Markets Absorb Iran Strikes As Investors Bet On Swift Conflict Resolution And Stability
The strikes targeted Iran’s three major nuclear facilities on Saturday, and President Donald Trump issued a stern warning to Tehran of even more severe consequences if peace negotiations do not proceed. This raised concerns about broader regional instability. However, financial markets in the Gulf seemed to have already priced in the possibility of military action, contributing to the subdued reaction.
Gulf Markets Hold Steady After Iran Strikes as Investors Expect Limited Economic FalloutSaudi Arabia’s main index edged up by 0.4%, buoyed by a 0.7% gain in Saudi National Bank shares. Qatar’s benchmark also showed strength, recovering from early losses to trade 0.2% higher. Analysts like Michael Brown from Pepperstone noted the quick recovery as a sign that investors are expecting a swift resolution to the conflict rather than a prolonged crisis.
Bahrain And Kuwait Prepare For Conflict Spillover, Regional Markets Remain Largely Stable
Despite the market calm, Bahrain and Kuwait, which host U.S. military bases, began preparing for potential spillover effects. Bahrain advised citizens to avoid major roads, while Kuwait established emergency shelters in government complexes. Nevertheless, Kuwait’s premier index climbed 0.3% and Bahrain’s market remained flat, indicating a measured investor response to these precautionary steps.
Beyond the Gulf, stock markets across the broader Middle East also performed well. Oman’s index rose 0.5%, and Egypt’s benchmark surged by 1.7%, reflecting regional investor confidence. Notably, Israel’s Tel Aviv index reached an all-time high with a 1% gain, signaling that investors across the region are currently betting on limited economic disruption despite the military developments.
