Arab and African stock markets traded cautiously on Monday as stalled diplomacy between the United States and Iran increased concerns about a prolonged regional conflict. Gulf exchanges were mostly lower, while African markets produced a mixed performance as investors monitored currencies, commodity prices and upcoming economic data.
Gulf markets face renewed pressure
Saudi Arabia’s Tadawul All Share Index declined approximately 0.2% during the session. Al Rajhi Bank and Saudi Aramco both fell 0.5%, placing pressure on the region’s largest and most liquid equity market.
Qatar recorded the steepest decline among the major Gulf exchanges, with its benchmark index falling 1%. Almost all constituents traded lower, while Qatar National Bank, the Gulf’s largest lender, lost 1.8%.
Dubai’s main index slipped 0.1%, led by a 1.3% decline in Emirates NBD. Abu Dhabi moved against the regional trend, gaining 0.1% after Abu Dhabi Ports surged 14.9%.
The sharp rise followed a conditional cash offer from sovereign wealth fund L’IMAD to acquire the outstanding shares in AD Ports and take the company private. The proposed offer values the remaining shares at 6.25 dirhams each.
Hormuz disruption drives caution
Shipping activity through the Strait of Hormuz remained severely restricted following recent attacks on tankers. Tracking data showed that only five commodity vessels passed through the waterway on Saturday and none on Sunday, compared with 31 during the previous weekend.
The disruption has increased uncertainty over oil and gas supplies from the Gulf. Brent crude traded close to $89 a barrel on Monday after rising strongly during the previous week.
Higher oil prices can support the earnings outlook for regional energy producers, but any prolonged interruption to shipping would also increase transport costs, disrupt trade and weaken investor confidence across Arab markets.
African exchanges show mixed direction
South Africa’s FTSE/JSE All Share Index gained approximately 0.4% to trade near 114,533 during the morning session. The South African rand also strengthened by about 0.4% against the dollar to around 16.14.
Investors are awaiting South Africa’s July inflation report on Wednesday. Economists expect annual inflation to slow to approximately 4.5% after reaching a two-year high of 5% in June. A softer reading could ease pressure on interest rates and support domestic assets.
Egypt’s EGX benchmark advanced around 0.4%, extending the positive tone seen during Sunday’s session. The market had previously been supported by strong quarterly earnings from Telecom Egypt.
Nigeria’s NGX All Share Index moved slightly lower, while Morocco’s Casablanca market was close to unchanged. Kenya and Ghana registered marginal gains, and the regional BRVM exchange, covering several West African economies, advanced approximately 0.3%.
Investors remain focused on external risks
The weaker US dollar and firmer gold prices offered some support to African currencies and mining shares. However, the outlook across both regions remains closely tied to events in the Middle East.
Further disruption around the Strait of Hormuz could push energy prices higher, strengthen inflationary pressure and increase volatility across Arab and African financial markets.
Newshub Editorial in Africa and the Middle East – 17 August 2026
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