Major stock markets in the Gulf retreated on Monday as hostilities escalated across the region and Iran asserted that it had sealed the strategically vital Strait of Hormuz, sending oil prices higher and reigniting global inflation fears, reports Reuters.
US forces carried out another wave of strikes against Iran on Sunday, targeting dozens of sites across multiple locations with precision munitions, according to Central Command. Iran's Revolutionary Guards said Monday that they had retaliated by attacking US military bases in Kuwait and Bahrain.
US President Donald Trump said on Sunday that the Strait of Hormuz remained open to commercial traffic, despite Iran's earlier declaration that it had closed the waterway after striking a vessel it said had traveled along an unauthorized route.
The widening conflict has cast fresh uncertainty over the future of an interim US-Iran agreement signed last month, which sought to reopen the strait and bring the war to an ?end following a further 60 days of negotiations.
Saudi Arabia's benchmark index eased 0.2 per cent, with oil major Saudi Aramco falling 0.5 per cent.
Meanwhile, Brent crude futures climbed $3.10, or 4.08 per cent, to $79.11 by 0325 GMT.
Dubai's main share index declined 1.4 per cent, dragged by a 2.6 per cent slide in the top lender, Emirates and a 1.4 per cent decrease in blue-chip developer Emaar Properties.
In Abu Dhabi, the index fell 0.5 per cent, with Abu Dhabi Islamic Bank losing 2.1 per cent.
The United Arab Emirates' defence ministry said on Sunday its air defense systems were responding to a missile threat.
Qatar's stock market was closed as the Qatar Stock Exchange joined the nation in mourning the passing of His Highness the Father Emir, Sheikh Hamad bin Khalifa Al Thani.
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