Mideast Stocks: Middle Eastern bourses fall on renewed US-Iran tensions

Commercial International Bank Egypt CIB

20/04/2026 08:21

Adds closing prices, analyst comment

By Ateeq Shariff

April 20 (Reuters) - Gulf equities ended lower on Monday, on fears the ceasefire between Washington and Tehran could unravel after the U.S. seized an Iranian cargo vessel, while traffic through the Strait of Hormuz remained largely suspended.

Hopes for a more lasting peace in the region dimmed after Iranian state media reported that Tehran had rejected fresh talks and would not take part in a second round of negotiations the U.S. had hoped to convene before the ceasefire expires on Tuesday.

Now in its eighth week, the war has triggered a historic shock to global energy supplies, sending oil prices soaring as the Strait of Hormuz remains effectively closed.

Dubai's main share index .DFMGI retreated 2.1%, snapping four sessions of gains, hit by a 2.3% fall in blue-chip developer Emaar Properties EMAR.DU and a 2.9% slide in toll operator Salik Co SALIK.DU.

Budget airline Air Arabia AIRA.DU finished 3% lower.

Renewed Middle East tensions hit sentiment, with regional markets driven by geopolitical headlines and the Strait of Hormuz in focus after a shift in rhetoric over the weekend, said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group.

 Resilient domestic fundamentals may help limit the downside, while signs of de-escalation or strong earnings could support a rebound.

In Abu Dhabi, the index .FTFADGI lost 0.8%, dragged down by a 2.7% decline in Aldar Properties ALDAR.AD.

The United Arab Emirates has begun talks with the United States on a potential financial backstop should the U.S.-Israeli war on Iran deepen the Gulf nation's crisis, the Wall Street Journal reported on Sunday. Reuters could not immediately verify the report.

Saudi Arabia's benchmark index .TASI closed 0.9% lower, weighed down by a 1.2% fall in Al Rajhi Bank 1120.SE. On the other hand, Saudi Aramco 2222.SE gave up early gains to end flat.

According to Takieddine, elevated oil prices could offer a supportive backdrop, helping to cushion downside risks and stabilize sentiment.

Brent crude futures LCOc1 advanced $4.37, or 4.8%, to $94.75 a barrel, as investors dealt with conflicting messages about the war. O/R

The Qatari index .QSI lost 0.4%, with Qatar Islamic Bank QISB.QA dropping 1.8%.

U.S. President Donald Trump had earlier warned that the United States would destroy Iran's bridges and power plants if Tehran refused his terms, repeating threats he had made throughout the war.

Iran, meanwhile, said any U.S. attack on its civilian infrastructure would trigger strikes on power stations and desalination plants in neighboring Gulf Arab states.

Outside the Gulf, Egypt's blue-chip index .EGX30 slipped 1.1%, with Commercial International Bank  COMI.CA losing 1.6%.

Saudi Arabia
.TASI fell 0.9% to 11,367
Abu Dhabi
.FTFADGI down 0.8% to 9,842
Dubai
.DFMGI retreated 2.1% to 5,862
Qatar
.QSI lost 0.4% to 10,672
Egypt
.EGX30 declined 1.1% to 51,813
Bahrain
.BAX slipped 0.8% to 1,934
Oman
.MSX30 down 0.7% to 8,259
Kuwait
.BKP lost 0.5% to 9,469

 (Reporting by Ateeq Shariff in Bengaluru; Editing by Janane Venkatraman, Mrigank Dhaniwala and Tasim Zahid)

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