Gulf markets are splintering as the Iran war continues. Here's what to know
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Investors are grappling with sharp divergence across the Gulf's markets, as the Iran conflict drives asset volatility in the region.
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Markets across the Gulf region have diverged sharply since the Middle East conflict began, as investors traverse big swings in energy prices and markets remain rattled by geopolitical turmoil. Saudi Arabia and Oman have both outflanked other regional indices, with Oman's index surging 9.3% since March 1, the day after the war began on Feb. 28, while the Saudi Tadawul has advanced 5.8%. In contrast, Dubai's DFM General Index has plunged nearly 16% over the same period, with Qatar sliding 4% and Bahrain's BAX falling 7.2%. Saudi's index, which is closely correlated to energy markets, has been turbo-charged by the spike in oil prices, while Oman has benefitted from investors seeking safe havens, according to Damanick Dantes, founder of Dantes Outlook. In contrast, the United Arab Emirates, which Dantes said is more sensitive to real-estate markets and broader geopolitical events, has been hit hardest. watch now VIDEO 4:14 04:14 Avoid excessive risks, focus on quality and stability in your portfolio Access Middle East Speaking with CNBC's "Access Middle East" on Thursday, Dantes said the elevated oil price remains a net positive for Saudi Arabia, where a small handful of large energy companies dominate the market. He highlighted Saudi Aramco's ability to export oil not via the Strait of Hormuz — the crucial shipping channel that has emerged as a critical flashpoint of the conflict — but via pipelines into the Mediterranean. "I think hovering above $80 a barrel is a net positive for Saudi and other energy companies within the region," Dantes added. The price of Brent crude has hovered around $100 a barrel for the last week and on Friday afternoon sat at $110 per barrel. U.S. West Texas Intermediate futures with May delivery also remain firmly above $95. Oman, meanwhile, has been boosted by a regional safe-haven bid. Dantes said the country's Vision 2040, which includes efforts to reduce dependency on oil, has drawn investors amid the upheaval. Dubai's index edged slightl...
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