Gulf bourses fall as investors wait for Trump's decision on fresh Iran strikes

what happened

Most Gulf equity markets opened Sunday lower as investors looked for signals on whether President Donald Trump will authorize new strikes on Iran. Saudi Arabia's main index fell 1%, with Al Rajhi Bank down 0.6% and Saudi Arabian Mining Company off 1.1%. Qatar's index lost 1.3%.

Explosions hit several locations across southern Iran late Saturday, including Qeshm Island, according to state media. The IRGC Navy later said two tankers were on fire after striking mines on a route it had declared off-limits, though it is not clear whether the maritime and land incidents are linked. US Central Command said an American aircraft fired on and immobilized a merchant vessel that attempted to break the US blockade of Iran on Saturday.

The Saudi-led coalition battling the Houthis reported intercepting two ballistic missiles fired toward Riyadh. Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al-Thani told Al Jazeera that Doha is still working as a go-between for Washington and Tehran to prevent the crisis from widening.

why it matters

For markets, the key issue is the risk to shipping and energy flows from the region. The blockade and mine incidents raise the geopolitical risk premium, which is why Gulf indices react so quickly to Iran headlines.

market impact

Gulf stock markets: Iran headlines weigh on shares and raise risk to oil supplies from the region

• ▼Saudi Arabian stock market pressure down — geopolitical tension weighs on regional equities
• ▼Qatari stock market pressure down — threat of fresh strikes and unclear talks keep buyers cautious

instruments