Stock markets across the Gulf region extended their losses today as continued disruption in the Strait of Hormuz weighed heavily on investor confidence.

Saudi Arabia’s benchmark index dropped 1.2%, marking its sixth consecutive day of decline, while Abu Dhabi and Qatar markets also recorded losses.

The downturn comes amid stalled U.S.-Iran peace negotiations and the near shutdown of shipping through the Strait of Hormuz, which normally handles around 20% of global oil and gas trade.

Banking and petrochemical stocks led the declines, reflecting concerns over reduced economic activity and lower corporate earnings. Meanwhile, Egypt’s stock market bucked the trend, posting modest gains supported by strong domestic demand.

From a business perspective, the sustained volatility highlights the region’s exposure to geopolitical risks. Investors are increasingly cautious, shifting toward safer assets amid uncertainty.

Economically, prolonged market weakness could impact capital flows, investment activity, and overall financial stability in the Gulf.

Looking ahead, market recovery will depend on progress in diplomatic negotiations and the reopening of key shipping routes.

Source : Reuters.