Gulf Equity Markets Fell Amid Regional Tensions
Regional indexes retreated as investors weighed shipping risks and the suspension of Bank Melli in the UAE.
Updated on Sept. 24, 2026 in Stock Markets
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Gulf equity markets closed lower on Thursday as persistent risks in the Strait of Hormuz and diplomatic friction weighed on investor sentiment. The downturn followed the UAE central bank's decision to suspend operations for Iran's Bank Melli.
Why it matters
The market slide reflects heightened investor anxiety over shipping safety in the Strait of Hormuz. These concerns are compounded by escalating diplomatic divisions between Tehran and Washington, which have created significant regional instability.
Major indices across the region saw losses, including Saudi Arabia's benchmark falling 0.8% and Dubai's index declining 0.4%. Al Rajhi Bank shares dropped 2% while Emirates NBD shares saw a 2.5% loss.
The players
Mohsen Rezaei
He is an Iranian politician and former military commander who has frequently addressed regional diplomatic and security strategy.
Bank Melli
It is a major Iranian state-owned bank that has recently faced operational suspensions in the United Arab Emirates.
Al Rajhi Bank
It is one of the largest Islamic banks in the world headquartered in Saudi Arabia.
Emirates NBD
It is a prominent banking group based in the United Arab Emirates that provides retail and corporate financial services.
Qatar National Bank
It is a leading financial institution in the Middle East and Africa region.
The details
Shipping activity through the Strait of Hormuz dropped significantly, with only 10 commodity vessels transiting on Wednesday compared to a 10-day average of 17. The tension further intensified after Mohsen Rezaei threatened that Iran would disable regional airports if neighboring countries cooperated with Washington.
Timeline
Wednesday: Mohsen Rezaei issued warnings via state television.
Wednesday: 10 commodity vessels transited the Strait of Hormuz.
Wednesday: The UAE central bank suspended Bank Melli.
Thursday: Gulf equity markets closed lower.
Market Dynamics
This market retreat follows the broader economic volatility patterns initiated by the 2026 US war on Iran. The current downturn mirrors historical precedents where regional conflict consistently triggers capital outflows and investor risk aversion.
Investors with exposure to Gulf-based financial institutions may see increased portfolio volatility amid the ongoing shipping and diplomatic risks. These market conditions suggest a need for defensive asset allocation as regional tensions continue to impact equity valuations.
The takeaway
Market participants should monitor developments in the Strait of Hormuz closely as transit volume remains a key indicator of regional stability. Investors are advised to maintain liquidity given the unpredictable nature of the current diplomatic environment.
Further reading
For more on how geopolitical instability influences regional financial health, visit our Stock Markets section.
Source note: This article includes information reported by Maritime Logistics Professional.
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