DUBAI: Most stock markets in the Gulf ended lower on Tuesday amid rising geopolitical tensions in the region, while retreating oil prices added to the pressure.
Israel said commando and paratroop units launched raids into Lebanon on Tuesday as part of a “limited” ground incursion, while Iran-backed Hezbollah said it had fired a barrage of missiles into Israel, including at its spy agency near Tel Aviv.
The raids by Israeli troops in southern Lebanon that began overnight went only a short distance over the border, an Israeli security official said, adding that no direct clashes with Hezbollah fighters were reported.
Hezbollah’s media relations chief Mohammad Afif denied Israel’s claim its forces had entered Lebanon.
Dubai’s main share index dropped 0.6%, weighed down by a 2.3% fall in blue-chip developer Emaar Properties and a 2% decline in utility Dubai Electricity and Water Authority.
In Abu Dhabi, the index was down 0.2%.
Oil prices - a catalyst for the Gulf’s financial markets - edged lower as a stronger supply outlook and tepid global demand growth outweighed fears over escalating conflict in the Middle East and its impact on crude exports from the region.
Saudi Arabia’s benchmark index closed 0.2% higher, with aluminium products manufacturer Al Taiseer Group gaining 0.2%.
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