Abu Dhabi, Dubai Bourses in Red as US-Iran Attacks Continue
Emirati Equities welcomed the new trading week in negative territory as the escalating hostilities in the Middle East weighed on investor sentiment. At the close of Monday trading, the FTSE ADX General Index fell 0.326%, while the DFM General Index lost 1.243%. Tensions between the US and Iran further escalated after both countries exchanged strikes over the weekend. The US Central Command attacked dozens of Iranian air defenses, radar, and missile sites, while the latter retaliated by striking US bases in the Gulf. Oil prices also rose after Iran claimed closure of the Strait of Hormuz and warned vessels against passing through it, reigniting fears of further disruption in supply. "Oil prices are getting an additional boost this morning, with ICE Brent up around 4% at the time of writing amid increasing tensions in the Persian Gulf. It was another weekend of the US and Iran exchanging strikes. Clearly, the risk is that this escalates to levels seen early in the war, where neighbouring countries and their energy infrastructure are also targeted," ING said. "Escalation has slowed vessels transiting the strait to a trickle, renewing concerns over oil supply tightness through.
Emirati Equities welcomed the new trading week in negative territory as the escalating hostilities in the Middle East weighed on investor sentiment.
At the close of Monday trading, the FTSE ADX General Index fell 0.326%, while the DFM General Index lost 1.243%.
Tensions between the US and Iran further escalated after both countries exchanged strikes over the weekend.
The US Central Command attacked dozens of Iranian air defenses, radar, and missile sites, while the latter retaliated by striking US bases in the Gulf.
Oil prices also rose after Iran claimed closure of the Strait of Hormuz and warned vessels against passing through it, reigniting fears of further disruption in supply. "Oil prices are getting an additional boost this morning, with ICE Brent up around 4% at the time of writing amid increasing tensions in the Persian Gulf.
It was another weekend of the US and Iran exchanging strikes.
Clearly, the risk is that this escalates to levels seen early in the war, where neighbouring countries and their energy infrastructure are also targeted," ING said. "Escalation has slowed vessels transiting the strait to a trickle, renewing concerns over oil supply tightness through.