Most stock markets in the Gulf ended lower on Thursday on fears that Israel’s military campaign in Gaza may escalate to a regional conflict.

Israel pounded Gaza with more air strikes on Thursday, as British Prime Minister Rishi Sunak followed U.S. President Joe Biden on visits to demonstrate support for the war against Hamas, while urging Israel to ease the plight of besieged Gazans.

An explosion at a hospital in Gaza on the eve of Biden’s visit upset his plans to meet Arab leaders, who called off a summit with him.

Saudi Arabia’s benchmark index dropped 0.6%, with Etihad Atheeb Telecom losing 2.8%, while Elm Company retreated 2.1%.

Dubai’s main share index retreated 1.9%, falling for a sixth consecutive session, dragged down by a 4.5% fall in blue-chip developer Emaar Properties.

The Dubai stock market continued to decline on risk aversion as traders reacted to the geopolitical developments in the region, said Daniel Takieddine, CEO MENA at BDSwiss.

“The resilience of the local economy could provide some support if efforts to de-escalate tensions succeed and conditions are more favorable.”

In Abu Dhabi, the index closed 0.6% lower.

However, the index’s losses were limited following a 0.5% rise in First Abu Dhabi Bank (FAB).

FAB, the United Arab Emirates’ biggest lender by assets, on Thursday beat estimates with a 46% jump in third-quarter net profit, boosted by higher interest income.

The Qatari benchmark retreated 1.5%, with almost all the stocks on the index finishing in negative territory, including Commercial Bank, which was down 3.4%.

Oil prices - a major factor for the Gulf’s financial markets - fell about 1% as the United States eased sanctions on Venezuela to allow more oil to flow globally, but Middle East tensions kept a lid on losses.

Outside the Gulf, Egypt’s blue-chip index tumbled 2.3%, led by a 10.1% plunge in Misr Fertilizers Production Co.

Egypt’s economy will grow slower than earlier predicted as inflation eats into purchasing power and the Egyptian pound weakens, a Reuters poll showed on Thursday.

========================================= SAUDI ARABIA    fell 0.6% to 10,655 ABU DHABI       down 0.6% to 9,428 DUBAI           dropped 1.9% to 3,808 QATAR           declined 1.5% to 9,802 EGYPT           lost 2.3% to 21,617 BAHRAIN         was up 0.2% to 1,945 OMAN            fell 0.5% to 4,681 KUWAIT          decreased 0.2% to 7,376=========================================