3 minutes of readingMarch 3, 2026 03:55 pm IST
Most Gulf stock markets fell on Tuesday, with Qatar’s benchmark index extending its decline after the country halted production of liquefied natural gas amid an escalating air war in the region. Israel expanded its campaign with new attacks against Iran and Hezbollah, as Tehran launched missiles and drones toward Israel, several Gulf states and a British air base in Cyprus, raising concerns of a protracted conflict.
State-owned QatarEnergy, 82% of whose customers are in Asia, was set to declare force majeure on its LNG shipments after Iranian drone attacks on facilities in the sprawling Ras Laffan complex.
Qatar’s benchmark index traded 0.9% lower, pressured by a 2.5% drop in Qatar Islamic Bank. The country condemned Iranian attacks on its territory and said in a letter to the UN Secretary-General and the president of the Security Council on Monday that it reserved the right to retaliate.
In Muscat, the index retreated more than 1% in broad declines, while the Kuwaiti index reversed early losses and gained 0.6%.
Gulf Cooperation Council sovereign wealth funds can play a critical role in supporting local equity markets by increasing liquidity and deploying additional capital to strengthen investor confidence. This is an ideal time to channel that support through fund-of-funds structures, said Samer Hasn, senior market analyst at XS.com. Meanwhile, oil prices rose for a third straight day on Tuesday as threats to shipping through the Strait of Hormuz raised fears of supply disruptions. The commander of Iran’s Revolutionary Guard said on Monday that the strait was closed and warned that Iran would set fire to any ship that tried to pass through, Iranian media reported.
Saudi Arabia’s benchmark index rose 0.5%, boosted by a 2.2% rise in oil company Saudi Aramco, while petrochemical maker Saudi Basic Industries Corp, in which Aramco owns 70%, added 3.1%.
The Saudi energy index advanced 2.1%. Among individual stocks, Saudi low-cost airline flynas extended declines to a third session, losing 2.8%, as air travel in the region took a hit.
According to Hasn, the Saudi market is showing unexpected resilience despite the rapid and sudden spread of the war, which is affecting several essential infrastructure sectors across the GCC.
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“Investors appear to be banking on hopes that the conflict will not be prolonged, along with expectations of broad Saudi government support for affected sectors.”
Elsewhere, Bahrain’s index was little changed. Meanwhile, the UAE Securities and Commodities Authority said the Abu Dhabi Stock Exchange and Dubai Financial Market would remain closed on Tuesday, citing its supervisory and regulatory mandate over the country’s capital markets. They were also closed on March 2.
