Gulf markets took a hit on Sunday after a sharp slide in oil and a wave of profit-taking pushed traders back into defensive mode. The mood was already shaky because of new fears over a global supply glut and rising tension between the United States and Venezuela after Washington seized a tanker.
The pressure grew after crude settled lower on Friday, closing the week with a 4% drop as oversupply worries and talk of a possible Russia-Ukraine peace deal muted any reaction to the U.S. move off Venezuela’s coast.
Saudi Arabia felt it the most, because the country’s main index crashed for a second day, dropping 1.2% to 10,589, with every sector flashing red. Al Rajhi Bank, the world’s biggest Islamic lender, slipped 1.3%, and Saudi Basic Industries Corp pulled back 1.2%.
The hit crossed industries, finance, and communications with no pockets of relief. Traders watched the selloff grow as markets priced in weaker oil levels and slower flows of cash across the region.
Gulf indexes react to pressure
Ashraf Al Mamari, chief executive of Oman’s state energy group OQ, said the company is speaking with new partners after SABIC walked away from its petrochemical project in Duqm. He said OQ wants to keep the plan moving and is reviewing options with groups that recently showed interest.
Qatar’s benchmark index broke its four-day winning streak and ended 0.4% lower at 10,855, with every component in the red. Qatar National Bank, the region’s top lender, lost 0.8%, and Industries Qatar also slipped 0.8%.
Kuwait’s index inched up 0.1% to 9,715, while Bahrain dipped 0.1% to 2,056. Oman rose 0.1% to 5,956, helped by steady moves in local names.
Outside the Gulf, Egypt moved the other way. The EGX30 added 0.1% to 42,065, helped by a 15.3% jump in Raya Holding and a 2.1% rise in Telecom Egypt, which had forecast high-single-digit revenue growth and an EBITDA margin in the low-40s range under its 2026 view.
Still though, trade stayed cautious across the board with no strong rebound signals as investors tried to size the effect of oversupply worries. The seizure of the tanker added stress to an already thin market, and talk of a possible peace path between Russia and Ukraine pushed crude lower even further.
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