Major stock markets in the Gulf fell in early trade on Wednesday as geopolitical tensions escalated in the region after Israeli airstrikes killed over 400 people in Gaza, shattering nearly two months of relative calm since a ceasefire began. 

Palestinian militant group Hamas and Israel accused each other of breaching the truce. It had broadly held since January and offered respite from war for the 2.3 million inhabitants of Gaza, which has been reduced to rubble.

Egypt and Qatar, the mediators in the ceasefire deal along with the U.S., condemned the Israeli assault, while the European Union, in a statement, deplored the breakdown of the ceasefire.

Saudi Arabia's benchmark index dropped 0.3%, hit by a 0.2% decline in Al Rajhi Bank and a 0.9% slide in Saudi Arabian Mining Company.

United Electronics Company slipped 2.9% on trading ex-dividend.

Dubai's main share index lost 0.3%, weighed down by a 1.7% drop in top lender Emirates NBD. Abu Dhabi's benchmark index eased 0.2%.

Meanwhile, U.S. President Donald Trump has vowed to continue the U.S. assault on Yemen's Houthis unless they end their attacks on ships in the Red Sea.

Oil prices fell on the day after Russia agreed to Trump's proposal that Moscow and Kyiv stop attacking each other's energy infrastructure temporarily, which could lead to more Russian oil entering global markets.

The Qatari index lost 0.3%, with Qatar International Islamic Bank dropping 2.2% on ex-dividend trade. (Reporting by Ateeq Shariff in Bengaluru; Editing by Sumana Nandy)


Reuters