Adedokun Waliyu 
Most Gulf equities erased early advances to finish lower on Wednesday, led by a sharp decline in Dubai, as investors stayed cautious over inflation and growth risks stemming from the U.S.-Israeli war against Iran.
The U.S. and Israel launched what the Pentagon and sources in Iran described as the most intense airstrikes of the war, even as global markets continued to bet that President Donald Trump would seek to bring the conflict to an end soon.
The war has effectively shut the Strait of Hormuz — a key route for roughly one-fifth of global oil and liquefied natural gas flows — forcing producers to halt output as storage fills and sending energy prices sharply higher.
Dubai’s main index (.DMFGI), opens new tab dropped 2.4%, hit by a 4.7% slide in blue-chip developer Emaar Properties (EMAR.DU), opens new tab and a 4.9% decline in top lender Emirates NBD (ENBD.DU), opens new tab.
However, Air Arabia (AIRA.DU), opens new tab ended 0.7% higher. The budget airline was set to snap a five-session decline, having lost more than 20% in the preceding five trading days.
Two drones fell near Dubai’s main airport and Bahrain evacuated some aircraft on Wednesday, as attacks on Gulf infrastructure kept disrupting air traffic and hindered attempts to restore flights on the 12th day of the war.
The fighting has disrupted global aviation, causing tens of thousands of cancellations, reroutings and schedule changes, while missile and drone threats shut much of Middle East airspace, including Qatar’s.
In Abu Dhabi, the index (.FTAFDGI), opens new tab fell 0.3%.
Investors are likely to stay highly sensitive to fresh headlines and regional developments, while swings in oil prices and logistical disruptions may continue to pose risks for some markets to varying degrees, said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group.
Saudi Arabia’s benchmark index (.TASI), opens new tab was up 0.1%, helped by a 1% rise in oil major Saudi Aramco (2222.SE), opens new tab.
Oil prices rebounded on Wednesday reflecting doubts whether the International Energy Agency’s reported plan for a record release of oil reserves could mitigate potential war-related supply shocks.
According to Ahmad Assiri, research strategist at Pepperstone, the Saudi market remains relatively stable, supported by oil prices above $87 per barrel and export flows through Yanbu on the Red Sea, which put the Saudi market in a better position than its neighbours.
Saudi miner Saleh Abdulaziz Al Rashed and Sons Co (1324.SE), opens new tab surged more than 14%, marking the Gulf region’s first market debut since the start of the war.
The Qatari index (.QSI), opens new tab dropped 0.9%, hit by a 2.1% decline in Qatar National Bank (QNBK.QA), opens new tab, the Gulf’s biggest lender by assets.
Several companies that buy liquefied natural gas from QatarEnergy — either as portfolio players or offtakers — including Shell, TotalEnergies, and some Asian firms, have declared force majeure, Reuters reported on Wednesday.
Elsewhere, Oman’s (.MSX30), opens new tab index fell 0.5%, though it remains up more than 31% for the year.
The Muscat market saw selective buying, allowing the index to break resistance and stay above 7,700, Assiri said.
Bahrain’s benchmark (.BAX), opens new tab edged 0.1% higher and Kuwait’s (.BKP), opens new tab added 0.5%.
Outside the Gulf, Egypt’s blue-chip index (.EGX30), opens new tab fell 1.2%.
