Arab stock markets opened cautiously on Tuesday as investors balanced higher oil prices against renewed military tension between the United States and Iran. Saudi shares moved lower, while markets in the United Arab Emirates and Qatar remained close to unchanged.
Saudi market loses ground
Saudi Arabia’s Tadawul All Share Index opened slightly above Monday’s closing level but later fell around 0.3 per cent to approximately 11,127 points. The broader weakness reflected continued concern about global interest rates and the regional security situation.
The Saudi market is sensitive to oil prices, but higher crude values do not always lift shares when the increase is driven by fears of conflict and disruption. Saudi Exchange
UAE and Qatar remain steady
Dubai and Abu Dhabi opened close to unchanged as investors avoided major positions during the first part of the session. Qatar’s benchmark index recorded a modest gain, although trading remained cautious.
Kuwait and Oman also showed limited movement, with their main indices edging lower. Egypt’s stock market was due to begin trading later in the regional morning.
Oil rises above $91
Brent crude climbed around 1.2 per cent to more than $91.50 per barrel after renewed fighting increased concerns about supplies from the Gulf. West Texas Intermediate rose approximately 1.5 per cent to just above $87.
The Strait of Hormuz remained at the centre of investor attention. Shipping through the waterway continues to operate far below normal levels, while diplomatic efforts led by Qatar and Oman have yet to produce a lasting solution. Reuters
Interest rates add pressure
Expectations of further US interest-rate increases also affected sentiment. Most Gulf currencies are linked to the US dollar, meaning Federal Reserve decisions strongly influence borrowing costs across the region.
Tuesday’s opening therefore reflected a familiar regional tension: higher oil prices supporting government revenues, while the reason for those higher prices created uncertainty for companies, investors and international trade.
Newshub Editorial in the Middle East – 1 September 2026
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