Middle East Stock Markets Fall as Israel-Iran Tensions Grow

BY THE ARAB TODAY Jun 16, 2025

Middle East Stock Markets Fall as Israel-Iran Tensions Grow
Image Credit: Forbes Middle East

Middle East Stock Markets Fall as Israel-Iran Tensions Grow

Middle Eastern stock markets ended lower on Sunday, as rising tensions between Israel and Iran raised worries about a bigger conflict in the region.

Stock Markets

Stock markets in the Gulf and nearby regions fell sharply after Israel launched airstrikes on Iran’s nuclear and energy sites, and Iran responded with missile attacks. This caused investors to worry.

In Saudi Arabia, the main stock index (Tadawul All-Share Index) dropped by 1.01% on Sunday, ending at 10,731.6 points. The fall was mainly due to regional tensions and weaker banking stocks. Al Rajhi Bank lost 1.5%, and Saudi National Bank dropped 3.1%. So far this year, the Tadawul index is down 11.1%.

Qatar’s stock market index (QSI) fell by 3.2% — its biggest fall since April. Qatar National Bank dropped 4.2%, and Qatar Gas Transport (Nakilat) fell 3.3%, with worries about problems at the South Pars gas field, which is shared with Iran.

In Kuwait, the stock market dropped 4.6%. Kuwait Finance House fell 3.7%, and Jazeera Airways sank 18.4% as airlines changed their flight paths.

Egypt’s EGX 30 Index fell 4.62%, ending at about 29,582. It had been at 31,016, reducing its gains for the year to just 4.3%. Commercial International Bank dropped 4.3%. In Jordan, the Amman Stock Exchange fell 1.5%, ending at 2,635.25.

Regional Instability

The drop in stock markets came after Israel attacked Iran’s nuclear and military sites on June 12, killing top Iranian military leaders. In response, Iran fired many missiles at Israel over the weekend. Explosions were reported in cities like Tel Aviv and Jerusalem, and videos online showed bright flashes in the sky and people running for cover.

Iran also canceled planned nuclear talks with the US, raising fears of more conflict.

Israel said its airstrikes were meant to stop Iran from developing nuclear weapons. Iran claims it is not trying to build a bomb, but Western experts say Iran is getting closer to that goal through uranium enrichment and missile development.

These attacks have increased fears of a larger war that could involve other countries, disrupt flights, affect oil shipping routes, and hurt global trade.

Published: 16th June 2025

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