Iran conflict deepens split among Gulf stock exchanges
The war involving Iran is widening the performance gap between Gulf markets, with Dubai and Qatar slipping while Saudi Arabia and Oman post gains.
Gulf equity indices are diverging as the Iran war intensifies. Markets in Dubai and Qatar have declined, reflecting their greater exposure to the threatened closure of the Strait of Hormuz. In contrast, Saudi Arabia and Oman have posted positive returns, helped by strong banking earnings and reforms. Qatar's weakness also stems from a post-World Cup slowdown that cut listed-company profits by 11% in the first half. Oman’s rally builds on five years of economic reforms and its status as an oil exporter outside the strait.
Why it matters
Regional investors and policymakers need to understand how the Iran war is reshaping Gulf market dynamics.
How this story developed
- Jul 20 U.S. and Iran intensify air strikes over Strait of Hormuz, diplomacy stalls
- Aug 28 Six months after the US and Israel launched attacks on Iran, the war shows no sign of ending, leaving Arab nations to grapple with economic shocks and heightened security concerns.
- Aug 28 Iran announced it will set conditions that must be met before the Strait of Hormuz can resume normal shipping.
- Aug 28 Treasury Secretary Scott Bessent unveiled the new sanctions package.
- Aug 29 Iran’s foreign minister announced that Tehran is still ready for diplomatic engagement if Washington ends its pressure tactics.
- Aug 29 U.S. forces have cleared mines in the Strait of Hormuz and are escorting roughly 1,500 commercial vessels through the passage.
- Aug 30 The United States hit Lark Island in southern Iran, targeting rocket launchers, marking its first attack on the country since late July.
- Aug 30 Ayatollah Mojtaba Khamenei appointed hard‑line allies to senior security positions.
- Aug 30 Treasury filed a draft regulation that could block the UAE branches of Banque Misr from U.S. correspondent banking.
- Aug 31 Iran appointed senior Revolutionary Guard and security officers to key posts, tightening internal leadership.
- Aug 31 Bessent announced that secondary sanctions will be issued on a weekly basis.
- Aug 31 The Centre for Economics and Business Research forecasts an average UK household will lose about £2,400 in real income by 2027 because of the conflict.
- Aug 31 Iranian media claimed a bulk carrier was seized and an oil supertanker hit mines, while U.S. officials said no vessels were struck.
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