• Gulf markets dropped sharply on Monday after Iran threatened to target regional energy and water infrastructure.
• Dubai’s index fell 3%, while Abu Dhabi declined 1.5%, led by real estate, banking, and utilities.
• Investor caution eased after Trump postponed potential strikes, though regional uncertainty continues to weigh on markets.

Stock Markets 

Stock markets in the United Arab Emirates fell on Monday as tensions between the U.S. and Iran escalated. Investors reacted to Iran’s warning that it could target energy and water infrastructure across the Gulf if U.S. President Donald Trump carried out his threat to strike Iranian electricity facilities.

Dubai’s benchmark index dropped 3%, dragged down by heavyweight real estate and telecom stocks. Blue-chip developer Emaar Properties fell 4.6%, while Emirates Integrated Telecommunications slipped 4.5%. Emirates NBD Bank and Air Arabia both declined 4.9%, reflecting widespread risk aversion.

Abu Dhabi’s index slipped 1.5%, led by declines in Aldar Properties and First Abu Dhabi Bank, both down 5%. The Abu Dhabi National Energy Company (TAQA) dropped 4.8%, reflecting investor concerns over regional energy infrastructure risks. ADNOC Gas lowered production temporarily due to debris near some facilities, though it confirmed operations remained safe and intact.

Market Uncertainty 

Heightened uncertainty triggered broad declines across most sectors, with heavyweight stocks weighing heavily on overall market performance, according to Joseph Dahrieh, managing director at Tickmill. Despite this, he noted that many firms maintain strong financial positions, leaving room for market recovery once risk sentiment eases.

Year-to-date, the Dubai index has fallen 11%, while Abu Dhabi’s benchmark has dropped 5.7%. Traders remained cautious after Saturday’s Trump warning to “obliterate” Iranian power plants if the Strait of Hormuz was not fully reopened within 48 hours. Markets rallied slightly after Trump indicated a postponement of military strikes, easing immediate pressure.