Gulf Stocks Fall as Houthi Attack on Saudi Arabia Stirs Regional Tensions

Most Gulf stock markets ended Tuesday's session in negative territory, with Saudi Arabia's bourse leading the losses, as a fresh attack by Houthi forces fueled investor concerns over escalating geopolitical conflict in the Middle East.

Regional Indices Under Pressure

The Saudi Arabian benchmark index (TASI) fell 0.9% to close at 10,782. The decline was driven by losses in major companies, including a 1.3% drop in Saudi Arabian Mining Company and a 0.6% fall in oil giant Saudi Aramco.

Other regional markets also felt the impact of the heightened risk sentiment:

• Dubai’s main share index (DFMGI) declined 0.8%, with developer Emaar Properties falling 2.1%.
• Qatar’s index (QSI) lost 0.5%, weighed down by a 0.7% drop in Qatar National Bank.

Bucking the regional trend, Abu Dhabi's index edged up 0.2%, while Egypt's blue-chip index (EGX30) posted a modest gain of 0.2%.

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Geopolitical Headwinds Intensify

The market downturn followed reports from Yemeni officials that Houthi forces had struck the Khamis Mushait airbase in southern Saudi Arabia with missiles and drones. The Houthi group claimed the attack was in retaliation for Saudi-led military actions in Yemen, according to the source material.

This event has amplified fears that the conflict could expand, potentially threatening critical energy infrastructure and global oil supply chains. Compounding these concerns, shipping activity through the vital Strait of Hormuz has reportedly slowed, and planned diplomatic talks between Gulf Arab states and Iran have been postponed.

Investors are also weighing the impact of previous disruptions, including strikes on Friday that affected Saudi Arabia's East-West pipeline. Riyadh attributed that incident to Iran-aligned fighters, adding to the complex diplomatic and security landscape facing the region.