Gulf markets dip amid Middle East tensions; Qatar index bucks trend

Most Gulf stock markets closed lower amidst escalating Middle East conflict, despite ongoing diplomatic efforts. Notably, Saudi Arabia’s Tadawul All Share Index, Dubai’s DFMGI, and Abu Dhabi’s ADX general index all experienced declines, while Qatar’s QSE index saw a slight rise, creating a mixed regional market tone. The recent downturn has been linked to geopolitical tensions, including Houthi attacks and US-Iran relations, impacting investor confidence and contributing to volatility. The ongoing tensions are reflected in prediction markets concerning oil prices. The likelihood of crude oil reaching a new all-time high by September 30 remains low at 0.5%, while the probability for December 31 has shown slight movement, currently standing at 12.5%. This suggests that market participants perceive a moderate chance of significant oil price increases towards the end of the year, influenced by geopolitical developments. In parallel, the possibility of the UAE and Qatar severing diplomatic relations in 2026 remains relatively stable, with current odds at 5.5%. The market appears to view the ongoing diplomatic efforts with cautious optimism, despite the backdrop of regional instability. ...