Most Gulf equities erased early advances to finish lower on Wednesday, led by a sharp decline in Dubai, as investors stayed cautious over inflation and growth risks stemming from the US-Israeli war against Iran, reports Reuters.
The US and Israel launched what the Pentagon and sources in Iran described as the most intense airstrikes of the war, even as global markets continued to bet that President Donald Trump would seek to bring the conflict to an end soon.
The war has effectively shut the Strait of Hormuz - a key route for roughly one-fifth of global oil and liquefied natural gas flows - forcing producers to halt output as storage fills and sending energy prices sharply higher.
Dubai's main index dropped 2.4 per cent, hit by a 4.7 per cent slide in blue-chip developer Emaar Properties and a 4.9 per cent decline in top lender Emirates NBD.
However, Air Arabia ended 0.7 per cent higher. The budget airline was set to snap a five-session decline, having lost more than 20 per cent in the preceding five trading days.
Two drones fell near Dubai's main airport and Bahrain evacuated some aircraft on Wednesday, as attacks on Gulf infrastructure kept disrupting air traffic and hindered attempts to restore flights on the 12th day of the war.
The fighting has disrupted global aviation, causing tens of thousands of cancellations, reroutings and schedule changes, while missile and drone threats shut much of Middle East airspace, including Qatar's.
In Abu Dhabi, the index fell 0.3 per cent.
Dubai drags Gulf markets lower as Iran war weighs
FE Team | Published: March 12, 2026 00:09:16
Dubai drags Gulf markets lower as Iran war weighs
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