Mideast Stocks: Gulf Markets in Red As New Tariff War Looms

Saudi stocks performed the worst in a declining Gulf market on Sunday following the latest tariff threat by the U.S. President on European Union goods, while Israel's latest assault on Gaza kept the region on edge.

Trump's statement on Truth Social on Friday that he is recommending a 50% tariff from June 1 on all EU goods sent global markets roiling.

Saudi Arabia's benchmark index dropped for a third straight session, falling 1.7%% to 10,999, its lowest level since November 2023 with all sectors in the red.

Al Rajhi Bank, the world's largest Islamic lender, lost 2% and ACWA Power declined 7.8%. Among other losers, Saudi National Bank, the kingdom's largest lender, dropped 2.8% and Saudi state oil company, Aramco, shed 0.6%.

Aramco is exploring potential asset sales to free up funds, two people with knowledge of the matter said on Saturday.

The Qatari benchmark index snapped its six-session winning streak and fell 0.4% with almost all of its constituents posting losses.

Qatar National Bank, the largest bank in the region, slipped 0.9% and Qatar Gas Transport declined 1.5%. 

However, Commercial Bank advanced 3% after the lender on Thursday approved a buyback of up to 10% of bank’s fully paid-up issued shares.

Meanwhile, the region remained on edge as Israeli military strikes killed at least 23 Palestinians across the Gaza Strip on Sunday.

Outside the Gulf, Egypt's blue-chip index was up for a fourth consecutive session, rising 0.2% with E-Finance for Digital gaining 3.2% and Palm Hills Development advancing 3.4%.

The developer, PHD, signed an agreement to develop 1.87 million SQM plot of land in Abu Dhabi.

SAUDI ARABIA dropped 1.7% to 10,999

KUWAIT fell 0.2% to 8,698

QATAR slipped 0.4% to 10,736

EGYPT rose 0.2% to 32,024

BAHRAIN fell 0.04% to 1,921

OMAN rose 0.4% to 4,515