Saudi Arabia’s benchmark stock index fell on Wednesday, while most other markets in the Gulf struggled for direction, as investors were worried about mounting fiscal pressures in major economies and the slow pace of trade deal progress.
The drop in Saudi Arabia’s crude oil exports in March to 5.754 million barrels per day (bpd) from 6.547 million bpd in February also weighed on the benchmark index.
Oil prices climbed more than 1% following a report that Israel is preparing to strike Iranian nuclear facilities, reigniting geopolitical tensions and raising supply concerns in the key oil-producing Middle East region.
Meanwhile, Moody’s downgrade of the U.S. credit rating last week did little to boost sentiment, particularly as President Donald Trump’s proposed tax cuts could add another $3 trillion-5 trillion to the country’s existing $36 trillion debt burden.
The lack of progress on U.S. trade talks and key partners urging Washington to roll back the tariffs added to the unease.
Abu Dhabi’s blue-chip index dropped 0.14%, while Qatar’s benchmark index rose 0.21%.
Dubai’s index, which had scaled a record high at the start of the week, fell 0.13% after losing 0.44% in the last session.
(Reporting by Rishab Shaju in Bengaluru; Editing by Sumana Nandy)
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