Gulf bourses all close lower after Houthi claim of Riyadh strikes

Summary

• Every Gulf market closed down Sunday after Houthis claimed missile and drone strikes on Riyadh.
• Saudi Arabia's TASI slipped 0.3% to 10,750; Qatar's index fell 1.1%, the region's steepest drop.
• Investors are now watching Trump's meeting with Gulf leaders this week for de-escalation signals.

The latest

Saudi Arabia's benchmark index closed 0.3% lower at 10,750 on Sunday, a day after Yemen's Houthis said they hit sensitive targets in Riyadh with missiles and drones, Reuters reported. The subdued mood carried across the region, with all six Gulf and Egyptian bourses tracked by Reuters ending in the red. Qatar's index led the declines with a 1.1% fall.

Details

• The market moves: Reuters put Saudi Arabia's TASI down 0.3% to 10,750, Qatar's QSI down 1.1% to 9,550, Kuwait's premier index down 0.7% to 9,182, Oman's MSX30 down 0.3% to 7,580, Egypt's EGX30 down 0.2% to 55,371 and Bahrain's BAX down 0.2% to 1,920.
• The biggest drags: ACWA Power fell 2.8%, the single heaviest weight on the Saudi index, according to Reuters. In Doha, petrochemical producer Industries Qatar dropped 4.1%, accounting for much of the Qatari market's 1.1% retreat and making it the worst regional performer named in the report.
• The exception: Saudi Aramco closed 1.3% higher after falling in early trade, Reuters reported. The oil major's recovery helped TASI pare its opening losses, leaving the benchmark's final decline well short of where it traded at the start of the session.
• The claim: The Houthis said they struck "sensitive" targets in the Saudi capital using missiles and drones, per Reuters. Flames and thick smoke were seen near Riyadh's main airport on Saturday, after authorities had issued overnight alerts warning of potential danger around the city.
• The wider conflict: Reuters framed the confrontation as another front in the broader conflict that followed US and Israeli strikes on Iran in late February. The Houthi campaign against Saudi Arabia has since become a recurring risk factor for regional asset prices rather than an isolated incident.
• Washington's position: President Donald Trump has reportedly rejected Saudi requests for direct US military intervention against the Houthis, Reuters said, leaving Riyadh without the American military backing it sought. No alternative form of US support was specified.
• The Beijing channel: China has privately urged Tehran to help restrain the Iran-aligned Houthis, following a Saudi appeal to Beijing, according to three Iranian sources familiar with the discussions cited by Reuters. Neither Tehran's response nor the timing of the Chinese approach was disclosed.
• The analyst read: Daniel Takieddine, co-founder and CEO of Sky Links Capital Group, said attention is turning to Trump's meeting with Gulf leaders this week, and that any meaningful de-escalation signals from it could support investor confidence. He did not put a figure on the potential market impact.

Between the lines

The size of the moves matters as much as their direction. A 0.3% drop in Riyadh after a claimed strike near the capital's main airport, with Aramco actually closing up 1.3%, points to investors pricing a familiar risk rather than a rupture. The sharper single-name falls — ACWA Power and Industries Qatar — suggest selective positioning, not a broad flight.

What's next

Trump's meeting with Gulf leaders this week is the near-term catalyst Takieddine flagged; any de-escalation language from it would be the first test. Also watch whether Tehran responds to Beijing's reported appeal, and how the Gulf bourses open next session.

Source: Reuters