Major stock markets in the Gulf declined in early trade on Wednesday after Iran’s ballistic missile strike on Israel raised fears of a wider regional conflict.

Saudi Arabia’s benchmark index slid 1.1%, dragged down by 0.8% fall in aluminium products manufacturer Al Taiseer Group and 0.6% decrease in Al Rajhi Bank. Elsewhere, oil company Saudi Aramco eased 0.2%.

Iran said on Wednesday its missile attack on Israel, its biggest military assault on the country, was over, barring further provocation, while Israel and the United States promised to hit back as fears of a wider war intensified.

Israel will launch a “significant retaliation” within days that could target oil production facilities inside Iran and other strategic sites, US news website Axios reported on Wednesday citing Israeli officials.

Dubai’s main share index fell as much as 1.1%, as most of the constituents on the index were in negative territory including blue-chip developer Emaar Properties, which retreated 1.4%.

Among other fallers, budget airliner Air Arabia was down 0.7%.

In Abu Dhabi, the index lost 0.6%.

Most Gulf markets end lower on rising tensions in the region

The Qatari index fell 0.4%, with the Gulf’s biggest lender Qatar National Bank down 0.4%.

Oil prices - a catalyst for the Gulf’s financial markets - jumped by over a dollar due to rising concerns Middle East tensions could escalate, potentially disrupting crude output from the region.