UAE stock markets fell in early trade on Thursday, dragged by financial and property stocks as Iran escalated attacks on oil and transport infrastructure across the Middle East, fueling concerns over a potentially prolonged conflict.
Iran warned that the world should be ready for oil at $200 a barrel after its forces attacked merchant vessels on Wednesday. Meanwhile, the International Energy Agency called for a large-scale release of strategic reserves to cushion what could become one of the worst oil shocks since the 1970s.
Dubai’s main share index declined 2.6%, hit by a 4.1% slide in blue-chip developer Emaar Properties and a 4% decline in top lender Emirates NBD.
Iran said it would target U.S.- and Israel-linked economic and banking interests in the region after an attack on an Iranian bank, a Tehran military spokesperson said Wednesday.
An unidentified projectile struck a container ship, causing a small fire, 35 nautical miles north of Jebel Ali in the United Arab Emirates, the United Kingdom Maritime Trade Operations (UKMTO) said on Thursday.
In a separate incident, Dubai authorities said they were responding after a drone fell onto a building near Dubai Creek Harbour.
In Abu Dhabi, the index dropped 1.3%, with AlDar Properties losing 4.3% and Abu Dhabi Commercial Bank declining 5%.
(Reporting by Ateeq Shariff in Bengaluru; Editing by Janane Venkatraman)
