Global markets are experiencing heightened uncertainty, reflecting a new reality where all asset classes face sharp volatility.

Investment strategies are shifting towards risk minimization and a focus on defensive assets as political and economic clarity remains elusive on the global stage.

Amid these fluctuations, Arab markets are not insulated from the impacts of the ongoing conflict between Israel and Iran.

Geopolitical tensions are manifesting visibly in the performance of regional stock exchanges, which are directly affected by any developments threatening energy security or maritime safety.

On the first trading day of the week, indices in major Arab markets recorded varied losses, driven by precautionary selling from both individual and institutional investors alongside a decline in risk appetite and an increase in demand for liquidity.

As fears rise over the potential escalation of the conflict, Arab markets are keenly observing new developments, coinciding with growing calls for restraint to avoid a broader confrontation that could heavily affect economic stability in the region.

In Kuwait, the stock index fell by 4.6%, with the Kuwait Finance House dropping 3.7%.

The main index in Muscat decreased by 0.87%, while Bahrain's index slipped by 0.81%.

Trading in the Dubai and Abu Dhabi markets resumed on Monday following the weekend break.

In Saudi Arabia, the market index closed down 1% at 10,732 points, marking its lowest close since October 2023, and reducing its year-to-date losses to approximately 1,300 points, or 11%.

Saudi Aramco's shares increased by 2% to 25.40 riyals, coinciding with rising oil prices.

Conversely, the shares of Al-Rajhi Bank decreased by 2% to 91.20 riyals, while Aqua Power and the National Commercial Bank fell by 3% to 245 riyals and 33.95 riyals, respectively.

The MBC Group stock saw the most significant decline at 10%, closing at 36.95 riyals.

In contrast, the Al-Bilad Gold Fund rose by 2% to 18.38 riyals.

In Qatar, the stock index dropped by 3.2%, marking its largest single-day decline since April, with all listed stocks falling, including Qatar National Bank, which ended trading down 4.2%.

Shares in Qatar Gas Transport Company fell by 3.3%.

Tensions were heightened following an Israeli attack on a maritime facility in the South Pars gas field, shared between Iran and Qatar, which is vital to Iran's gas production and raised concerns over potential disruptions to energy exports in the region.

In Egypt, the main index of the stock exchange reduced its losses by the end of trading on Sunday, having initially plunged 7.5%, the largest single-day decline since 2020, amid strong selling by retail investors amid the conflict between Iran and Israel, which began on Friday.

Egyptian stocks saw a market value loss of approximately 100 billion Egyptian pounds, reaching a total of 2.2 trillion pounds.

Trading was halted on 47 companies after their shares fell more than 5% and 10% during the day.

The main index closed down 4.6% at 31,060 points, largely pressured by a 4.3% decline in the Commercial International Bank stock and a 12.4% drop in EFG Hermes shares.

The EGX30 index closed at 31,016 points, down 4.60%, while the EGX30 capped index fell 4.65% to close at 38,677 points and the EGX30 total return index declined by 4.59% to settle at 13,925 points.

In Jordan, the stock market lost ground on Sunday amid selling in strategic shares, led by the Arab Bank, amid weak liquidity.

The general stock index closed down 1.53% at 2,635.25 points, with trading valued at 6.2 million Jordanian dinars (8.7 million USD), down from 9.3 million in the previous session.

The Arab Potash share fell by 1.89% to 31.59 dinars, while the Mining and Phosphate Company stock dropped by 0.96% to 14.42 dinars and the Arab Bank's share decreased by 3.59% to 5.1 dinars.