Reuters: Gulf stock markets decline as fears of widening conflict grow

Gulf stock markets closed lower on Thursday as fears of a widening conflict in the region grew following Houthi attacks on Saudi Arabia and US moves to withdraw diplomats. Saudi Arabia led the declines with a 2.3% drop, while Dubai and Abu Dhabi indices each fell 0.7%. Analysts linked the decline to geopolitical risks and concerns about energy supplies through the Strait of Hormuz.

Gulf stock markets closed lower on Thursday, October 22, 2026, as fears of a widening conflict in the region grew following new Houthi attacks on Saudi Arabia, coinciding with US moves to withdraw some diplomats and their families from missions in the Middle East, according to Reuters. The Saudi market led the declines, with its main index falling 2.3%, while shares of Saudi National Bank fell 5.1% and Aramco fell 0.7%. Dubai and Abu Dhabi indices each fell 0.7%, Qatar and Bahrain 0.3%, Kuwait 0.5%, and Oman 0.8%. Outside the Gulf, Egypt's main index of leading stocks fell 3.4%, recording its largest daily decline since June 2025. Analysts linked the market decline to escalating geopolitical risks and concerns about energy supplies through the Strait of Hormuz, along with reports of US moves to evacuate personnel from diplomatic missions in the region. These concerns coincided with the Iranian Revolutionary Guard's announcement that it had targeted four ships it said were involved in illegally transporting oil, as well as Iranian reports of explosions of unknown origin in the south of the country.