Gulf Markets Plunge and Kuwait Halts Trading as Middle East Conflict Intensifies
Gulf Markets Plunge and Kuwait Halts Trading as Middle East Conflict Intensifies
Gulf stock markets plunged sharply on Monday, with Kuwait suspending all trading after a dramatic escalation in the Middle East rattled global financial systems. The turmoil followed Iran’s retaliatory missile and drone strikes on US and Israeli targets, launched in response to joint attacks that reportedly killed Supreme Leader Ayatollah Ali Khamenei—triggering one of the region’s most volatile security crises in recent years.
Iran’s strikes targeted Israeli positions and US military bases across several Gulf states, including Qatar, the UAE, Bahrain, and Kuwait. Explosions were reported in major hubs such as Dubai and Doha, forcing the closure of key airports, including Dubai International, and severely disrupting international aviation routes. Tehran denounced the earlier attacks as a “declaration of war” and vowed an “unrelenting response,” while neighboring Gulf nations condemned Iran’s retaliation amid mounting fears of a broader regional conflict.
The financial fallout was immediate. Boursa Kuwait announced an indefinite suspension of trading beginning March 1, citing “exceptional circumstances” and the need to safeguard market stability. Across the region, markets slid steeply before clawing back some losses. Saudi Arabia’s benchmark index fell 2 percent after dropping as much as 4.6 percent earlier in the session. Banking stocks bore the brunt, with Al Rajhi down 2.8 percent and Saudi National Bank off 4.3 percent. Aviation shares also slumped, with flynas tumbling 5.8 percent amid airspace disruptions. Energy stocks, however, bucked the trend as oil price forecasts surged toward $100 per barrel, lifting Saudi Aramco by 2.6 percent.
Beyond financial markets, the crisis is disrupting global supply chains. Major energy companies have suspended shipments of crude oil, refined fuel, and liquefied natural gas through the Strait of Hormuz, a vital artery for global energy trade. The United Nations has urgently called for restraint as concerns grow over the risk of full-scale regional war. Meanwhile, reports indicate that US President Donald Trump has agreed to hold talks with Iranian leaders in an effort to contain the rapidly escalating confrontation.
