Mideast Stocks: Gulf markets rebound amid Israel-Iran conflict

Commercial International Bank Egypt CIB

16/06/2025 14:24

By Ateeq Shariff

June 16 (Reuters) - Stock markets in the Gulf ended higher on Monday, recovering some of their losses from previous sessions when they were jolted by the escalating conflict between Israel and Iran.

Saudi Arabia's benchmark index .TASI advanced 1.3%, led by a 1.5% rise in Al Rajhi Bank 1120.SE and a 6.9% jump in ACWA Power Company 2082.SE.

The upward trend mirrored similar movements in both Asian and European markets, where a temporary improvement in sentiment was bolstering investor appetite, said Osama Al Saifi, Managing Director for MENA at Traze.

"This optimism was partly fuelled by positive economic data from China, which showed an acceleration in retail sales despite U.S. tariffs," he said.

Dubai's main share index .DFMGI added 0.8%, with utility firm Dubai Electricity and Water Authority DEWAA.DU rising 2.2%.

Iranian missiles struck Israel's Tel Aviv and the port city of Haifa before dawn on Monday, destroying homes and fuelling concerns among world leaders at this week's G7 meeting that the confrontation could lead to a broader regional conflict.

Israel said it had targeted Iran's nuclear facilities, ballistic missile factories and military commanders on Friday at the start of what it warned would be a prolonged operation to prevent Tehran from building a nuclear weapon. Iran, which says its nuclear programme is for civilian use, has promised a harsh response.

Iran said its parliament was preparing a bill to leave the Nuclear Non-Proliferation Treaty (NPT), adding that Tehran remains opposed to developing weapons of mass destruction. Passing the bill could take several weeks.

In Abu Dhabi, the index .FTFADGI finished 0.2% higher.

Oil prices - a catalyst for the Gulf's financial markets - edged down, paring back Friday's 7% surge, as renewed military strikes by Israel and Iran over the weekend left oil production and export facilities unaffected.

The Qatari benchmark .QSI climbed 1.7%, a day after falling more than 3%, buoyed by a 2.5% leap in the Gulf's biggest lender Qatar National Bank QNBK.QA.

Outside the Gulf, Egypt's blue-chip index .EGX30 inched 0.1% higher, helped by a 1.4% rise in Commercial International Bank COMI.CA. On Sunday, the index fell 4.6% marking its biggest intraday fall in about 14 months.

SAUDI ARABIA
.TASI rose 1.3% to 10,867
Abu Dhabi
.DFMGI gained 0.8% to 5,407
Dubai
.FTFADGI up 0.2% to 9,585
QATAR
.QSI leapt 1.7% to 10,465
EGYPT
.EGX30 up 0.1% to 31,042
BAHRAIN
.BAX added 0.1% to 1,902
OMAN
.MSX30 was up 0.7% to 4,143
KUWAIT
.BKP advanced 1.4% to 8,626

 (Reporting by Ateeq Shariff in Bengaluru; Editing by Alex Richardson)

 ((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))