Mideast Stocks: Gulf Bourses Retreat as US–Iran Hostilities Intensify

Most Gulf stock markets fell on Sunday as escalating U.S.–Iran attacks across the region stoked inflation concerns and strengthened expectations of further U.S. interest-rate hikes. 

The United States said it had carried out an eighth consecutive night of strikes on Iran, after earlier reporting that two American service members were killed in Jordan and another was missing following an Iranian attack. 

Kuwait, which faced sustained Iranian attacks on Saturday, intercepted more Iranian missiles and drones on Sunday, its army said. 

Bahrain's air defences also downed an Iranian attack the same day, according to state TV. 

The escalation comes after an interim ceasefire reached a month ago collapsed last week, heightening fears of a renewed slide into all-out war. 

Qatar's stock market index retreated 1.5%, dragged down by a 3% slide in the Gulf's biggest lender by assets, Qatar National Bank. 

Qatar Gas Transport also fell 2%. Qatar's defence ministry said its forces foiled an Iranian missile attack early on Friday, while the interior ministry reported a child was injured by shrapnel from the interception. 

Saudi Arabia's benchmark index closed flat, with oil major Saudi Aramco rising 0.6%. 

Since the war began, the kingdom has rerouted over 70% of its usual daily crude exports to the Red Sea port of Yanbu. 

Shipments from Yanbu have averaged 4 million barrels per day in recent weeks, compared with about 973,000 bpd a year earlier. 

On Friday, oil prices climbed more than 4% to their highest in more than a month. 

Elsewhere, Bahrain's index was down 1.2% and Kuwait's fell 0.4%.

Outside the Gulf, Egypt's blue-chip index fell 0.7%. 

Saudi Arabia finished flat at 10,717 

Qatar retreated 1.5% to 9,955 

Egypt was down 0.7% to 52,560 

Bahrain closed 1.2% lower to 1,962 

Oman declined 1% to 7,407 

Kuwait dropped 0.4% to 9,036