Gulf stocks decline as the Hormuz attacks reach the highest level since the start of the war

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Most Gulf stock markets closed trading Thursday with declines as attacks on oil tankers in the Strait of Hormuz reached their highest levels in the war, cutting off traffic through the vital waterway and exacerbating concerns about supplies.

The British Maritime Trade Operations Authority stated that the most recent attack occurred yesterday, Wednesday, when an oil tanker was hit by several projectiles 51 nautical miles north of the Qatari city of Al Shamal, resulting in casualties, according to Reuters.

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The escalation of attacks came at a time when oil-producing countries in the Gulf region sought to increase their exports.

The Saudi stock market index concluded trading on Thursday with a decline of 1.6%, with the shares of the National Bank of Saudi Arabia, the largest bank in the country in terms of assets, declining by 3.1%.

Maritime shipping traffic was quickly affected. Shipping data showed that the number of ships crossing the Strait of Hormuz fell to the lowest level in more than two months.

The intensity of fighting in Yemen between the Iran-allied Houthis and government forces has also escalated, increasing the risks facing Gulf markets.

The index in Abu Dhabi fell by 1.6%, and the index in Dubai fell by 1.7%.

Mahmoud Mishal, chief market analyst at VT Markets in Dubai, said that investors are cautious in light of the tension in the region and the faltering diplomatic efforts. He added that reports indicating a possible resumption of attacks affected investor sentiment and raised doubts about the talks between the United States and Iran, while repeated attacks on oil tankers and disturbances in major sea lanes kept concerns alive with reduced traffic.

The Qatar index also fell to its lowest level since the selling wave caused by the pandemic in June 2020, closing down 2.2%. Qatar National Bank was the biggest loser after falling 2.9%. After the end of trading hours, Qatar National Bank announced net profits in the third quarter amounting to 4.65 billion riyals ($1.28 billion), up from 4.43 billion riyals in the previous year.

The Bahraini index fell 0.2%, the Kuwaiti index lost 0.4%, while Omani stocks rose 0.1%.

The Egyptian Stock Exchange was closed today, Thursday, on the occasion of an official holiday.