Gulf markets fall as fresh Houthi strikes on Saudi Arabia raise regional risk

Gulf stock markets fell on Thursday after renewed Houthi attacks on Saudi Arabia intensified concerns that hostilities could widen. Business Recorder reported that Saudi Arabia’s benchmark dropped 2.3%, its steepest decline in more than two years and its eighth weekly fall; Saudi National Bank shares lost 5.1%, while Saudi Aramco declined 0.7%.

The United States ordered some diplomats and their families to leave its Saudi missions, with plans to withdraw family members from other regional posts, according to US officials cited by Reuters. Dubai and Abu Dhabi each shed 0.7%, while Qatar’s index fell 0.3%; Egypt’s benchmark sank 3.4%, its sharpest intraday decline since June 2025. Investors also weighed risks to energy shipments through the Strait of Hormuz, reports of explosions in southern Iran, and Iran’s claim that its forces struck four vessels linked to illegal oil transfers.