On Sunday, the 12th of May 2019, all major Gulf stock exchanges rounded off the day deep in the red, after Pentagon had agreed to deploy Patriot missiles and a warship in the middle east to ensure merchant ships’ safety through the Iran-controlled strait of Hormuz, which Iran had long been threatening to shut down unless Washington had deterred sanctions on Iranian crude.
Followed by the Iranian Revolutionary Guard’s comment on Sunday (May 12th), that at least four merchant ships had come under their firing range, Saudi’s main index fell more than 2 percent, remarking its lowest closing level since March.
In point of fact, amid a contumacious battle-trumpet beating out loud over the dominance of Strait of Hormuz, the Saudi index had plummeted more than 7 percent this month. Addressing to growing tension between US and Iran, a chief strategy officer at Abu Dhabi Capital in Abu Dhabi, Mohammed Ali Yasin said, “The growing military tensions between the US and Iran are pushing the market down”.
Elsewhere in Gulf, the Dubai index fell by 1.6 percent, under pressure from financials, while UAE’s largest bank, Emirates NBD soured by 3.5 percent. Kuwait had closed the day down by 2.2 percent and Qatar had curbed 1 percent of its earlier gains, while Bahrain had wrapped up the day down by 0.6 percent.