The decline of Gulf stock markets following Iran's firm stance on not negotiating with the United States to end the war has been significantly noticeable. Recently, Iran announced that it would not engage in any negotiations with the United States until its demands are met. This position has heightened concerns regarding the economic and security situation in the Gulf region and led to a severe drop in stock indices across various countries.
Economic and Security Consequences
Market analysts have been heavily impacted by this event. The combination of Iran's stance and increasing reports of attacks on ships has created a cautious atmosphere in the stock markets of the region. In this context, Abbas Araghchi, Iran's Foreign Minister, emphasized in an article published in the Financial Times that Iran is ready for diplomacy, but will also defend itself.
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Recent reports indicate at least 18 attacks on ships in the past two weeks, which has severely endangered crude oil shipments from the Gulf and the transfer of oil from ship to ship. This situation has been one of the main factors exerting pressure on the regional stock markets and has led to a decline in stock indices across various countries.
Stock Market Declines in Gulf Countries
On Wednesday, the Saudi stock index faced a 0.3 percent decline, and the share of Alinma Bank, which dropped by 5 percent, was significantly affected due to reports of a decrease in the bank's third-quarter profits. Additionally, the Abu Dhabi stock index fell by 0.6 percent, while the Bahrain index decreased by 0.1 percent, Oman by 1.5 percent, and Kuwait by 0.7 percent. Overall, the Omani stock market experienced the largest decline in the region with a 1.5 percent drop.
Given these developments, analysts from the London Stock Group predict that Iran is likely to target tankers in the Sea of Oman, which could have serious implications for oil markets and stocks. While markets are under selling pressure, the economic future of the Gulf region will face serious challenges, necessitating effective and immediate measures.
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