Most Gulf markets fall as regional risks escalate; Saudi flat on supply-reassurance reports

Business Recorder reported that most Gulf bourses closed lower on Wednesday as rising regional tensions made traders wary. Saudi Arabia's index ended flat, supported by reports of extra crude cargoes shipped via Oman, which eased worries about wider supply disruptions in the Middle East. Qatar's benchmark fell 1.4%, and every stock in its index was in the red, among them Qatar Islamic Bank, down 2.4%.

According to the Iran-backed Houthis, Saudi jets bombed Yemen, and the group answered by firing drones and missiles at cities in the kingdom. Riyadh said it intercepted a Houthi drone to the south of Mecca just before it breached restricted airspace, describing the event as a red line, while the Houthis rejected claims they had aimed at the holy city. Elsewhere, Dubai's index rose 0.7%, and Emaar Properties gained 3.4% after its board approved a one-off special payout of AED 4.4 billion, equal to AED 0.50 a share.

Traders are now pricing a 94.5% likelihood of a Federal Reserve rate increase, up from 33.1% a month earlier, according to CME's FedWatch Tool. Gulf markets generally follow shifts in US monetary policy expectations because most local currencies in the region are tied to the greenback. Shipping through the Strait of Hormuz stayed in single digits, with four vessels passing on Tuesday compared with seven the day before, according to preliminary data released Wednesday.