A Saudi broker monitors the stock market at the Arab National Bank in Riyadh, the Saudi capital, on December 11, 2019.
Fayez Nureldine | afp | fake images
Gulf markets fell slightly on Sunday, providing an early indication of investor reaction to Iran's unprecedented attack on Israeli territory.
Saudi Arabia's benchmark stock index fell 1.8% in early trading, while Qatar's main index fell 1.6%, with Gulf lender QNB leading the losses.
Tel Aviv's broad and blue-chip index stocks were flat or slightly lower in early trading.
Iran's retaliatory strike with drones and missiles in response to a suspected Israeli airstrike raises the threat of a broader regional conflict. Israel reported modest damage, but the key for investors will be how the conflict develops from here.
"If the situation continues to retaliate rather than escalate, then we will likely see a sigh of relief across equities, even if oil, gold, dollar and bond prices incorporate a risk premium to reflect the conflict." said Brian Jacobson. , chief economist at Annex Wealth in Milwaukee, Wisconsin.
Explosions are seen in the skies over the capital, following Iran's attack on Tel Aviv, Israel, on April 14, 2024.
Mostafa Alkharouf Anatolia fake images
Brent crude futures rose 71 cents to $90.45 a barrel on Friday, and prices last week approached a six-month high on concerns that Iran, OPEC's third-largest producer, would attack Israel. .
Meanwhile, gold rose above $2,400 an ounce to hit a record high on Friday, boosted by persistent safe-haven demand.
Since Iran-backed Hamas attacked Israel on October 7 and Israel invaded Gaza in response, the MSCI global stock index has hit new highs.
Saudi Arabia's main index had risen around 20% from October 8 to its last close before the Eid al-Fitr holidays on April 4. Qatar's benchmark index fell almost 0.8% between October 8 and its last close on April 8.
Elsewhere in the region on Sunday, Kuwait's benchmark index was down 0.9%, Oman's index lost 0.2% while Bahrain's main index <.BAX> broke the downward trend with a gain of 0.9%.
