Gulf Stocks Volatile After US Iran Strikes Saudi TASI Gains 0.2% Qatar Index Surges 1%

The Gulf stock market experienced immediate volatility following U.S. strikes on Iran’s nuclear sites, with most indexes opening lower on Sunday. The move, announced by Donald Trump, intensified Iran nuclear tensions in the region. However, some markets began to recover as investors reassessed the broader economic risks. Saudi Arabia’s TASI index managed a 0.2% gain, largely supported by a 0.7% uptick in Saudi National Bank shares. This resilience in the banking sector provided a buffer against the geopolitical headwinds, reflecting investor confidence in the domestic stability of Saudi Arabia despite the regional upheaval.

Qatar’s index saw a notable recovery, surging over 1% by mid-morning. This turnaround came after local authorities held emergency crisis talks with global energy firms, addressing concerns over the impact of Israeli assaults on the South Pars field, a crucial gas resource shared with Iran. The talks aimed to ensure continuous electricity flows and review backup plans, which helped ease investor anxiety and aided in the market’s recovery. Kuwait’s premier index also showed strength, increasing by 0.5% by noon, as local morale improved with no immediate threat to oil infrastructure identified. In Oman, the MSX30 fell 0.3% due to wider economic worries, but these gains helped offset losses in the region.

The overall response of the Gulf stock market to U.S. strikes on Iran remains mixed, with day traders closely watching the next moves from Washington and Tehran. The situation was further complicated by Israeli airstrikes against Iranian military infrastructure earlier this month, which sparked initial market volatility. The escalating tensions and the potential for retaliatory action from Iran kept oil-sensitive sectors under pressure. The crisis negotiations in Qatar and Saudi Arabia’s financial stability will continue to be important indicators for investors. The shifting response of the Gulf stock market to U.S. strikes on Iran highlights a precarious equilibrium between geopolitics and economic stability. Investors will closely monitor developments from key institutions such as Saudi National Bank, as well as diplomatic messages and military operations in the region. The situation remains fluid, with the potential for further volatility as the geopolitical landscape continues to evolve.