Gulf markets retreat amid escalating Middle East conflict

Most Gulf stock markets slipped in early Monday trading after Yemen's Houthis launched attacks on Israel over the weekend, further escalating the US-Israel conflict with Iran and its proxies in the Middle East, reports Reuters.
Amid the rising tensions, US President Donald Trump said Washington and Tehran had been communicating both directly and indirectly, describing Iran's new leadership as "very reasonable." At the same time, additional US troops arrived in the region, while the Israeli military said it was targeting Iranian government infrastructure across Tehran on Monday. Late Sunday, the Financial Times reported that Trump said the US could seize Kharg Island in the Persian Gulf - a key hub for Iran's oil exports - though he also suggested that a ceasefire could be reached quickly.
Meanwhile, Iran said it was prepared to respond to any US ground offensive, accusing Washington on Sunday of planning a land assault even as it continued to pursue negotiations.