Gulf bourses slip as Iran-US escalation dents risk appetite

Vessels near the Strait of Hormuz, as seen from Musandam, Oman, August 31, 2026. REUTERS/Stringer Purchase Licensing Rights , opens new tab BENGALURU, Aug 31 (Reuters) - Most Gulf stock markets were lower in early trade on Monday as renewed military action between the ​U.S. and Iran near the Strait of Hormuz weighed ‌on risk appetite. American forces struck two Iranian launchers on Larak Island in the Strait of Hormuz on Sunday, prompting Tehran to retaliate with attacks on U.S. forces stationed ​in Jordan. Iran also said it struck a tanker transiting ​through the strategic waterway. Sign up here. The United Arab Emirates said its air ⁠force engaged a drone over its territorial waters that had originated ​from Iran, according to a defence ministry statement on Monday. Dubai's main index (.DFMGI) , opens new tab ​fell 0.6%, with most constituents trading lower. Emirates NBD Bank (ENBD.DU) , opens new tab , the emirate's largest lender, dropped 1.7%, while developer Emaar Properties (EMAR.DU) , opens new tab declined 0.9%. Abu Dhabi's benchmark (.FTFADGI) , opens new tab lost 0.4%, ​pressured by a 2% fall in Abu Dhabi Islamic Bank (ADIB.AD) , opens new tab and ​a 2% decline in Aldar Properties (ALDAR.AD) , opens new tab . Conglomerate Alpha Dhabi Holding (ALPHADHABI.AD) , opens new tab shed 0.9%. Earlier on Monday, ‌Alpha ⁠Dhabi said it doubled its commitment to $1 billion for its private-credit joint venture with Abu Dhabi wealth fund Mubadala Investment. Qatar's benchmark (.QSI) , opens new tab slipped 0.6%, with most sectors in negative territory. Qatar Fuel Company (QFLS.QA) , opens new tab fell 2.4%, while ​telecommunications firm Ooredoo (ORDS.QA) , opens new tab ​lost 2%. Saudi Arabia's ⁠benchmark index (.TASI) , opens new tab was largely unchanged, as declines in real estate, technology and industrial shares offset gains in ​other sectors. Developer Umm Al Qura for Development (4325.SE) , opens new tab fell ​1.7%, while ⁠digital-services provider Elm Company (7203.SE) , opens new tab declined 1.1%. In contrast, Rabigh Refining and Petrochemical (2380.SE) , opens new tab rose 3.3%, and Arabian Drilling (2381.SE) , opens new tab gained 3.4%. Arabian Drilling, Saudi Arabia's largest drilling ⁠contractor ​by fleet size, said it secured a five-year ​contract for 11 land rigs, adding about 3 billion riyals ($799.06 million) to its backlog. ($1 = ​3.7544 riyals) Reporting by Md Manzer Hussain in Bengaluru; Editing by Thomas Derpinghaus Our Standards: The Thomson Reuters Trust Principles. , opens new tab Suggested Topics: Middle East X Facebook Linkedin Email Link Purchase Licensing Rights