Gulf stock markets gave a mixed performance on Wednesday as investors weighed the benefits of higher oil prices against the growing economic risks from the region’s escalating conflict.
Saudi Arabia’s benchmark index edged up 0.1%, supported by a rise in Saudi Aramco shares.
Dubai’s main index fell 0.5%, while Abu Dhabi gained 0.1%. Qatar’s index slipped 0.1%.
The market moves came as Brent crude climbed above $100 a barrel following attacks on Saudi energy infrastructure and a broader escalation involving the United States and Iran.
For Gulf markets, the oil-price surge is not necessarily a straightforward positive. Higher crude prices can improve government revenues, but prolonged disruption to shipping and energy infrastructure could increase operating costs and weigh on investor confidence.
The market reaction is therefore likely to remain sensitive to developments around the Strait of Hormuz and the security of Gulf energy facilities.
