Saudi Arabia’s benchmark stock index fell 1.3% on Wednesday, marking its sharpest single-day drop in three months and leading losses across the wider Gulf region.
The decline reflects growing investor anxiety over the potential for a broader regional conflict, with fears that hostilities could disrupt critical energy supply chains and shipping routes.
9%, as investors adopted a cautious stance ahead of key geopolitical and monetary policy developments.
The sell-off extended a downturn that began earlier in the week.
On Monday, Gulf markets retreated as reports emerged that Iran had sealed key shipping routes, casting a shadow over regional trade flows.
The following day, the Saudi benchmark dropped a further 0.9%, as investors adopted a cautious stance ahead of key geopolitical and monetary policy developments.
The persistent pressure on regional equities highlights the sensitivity of Gulf markets to geopolitical risk.