Markets in the United Arab Emirates fell sharply on Friday after Israel launched wide strikes against Iran’s nuclear and military facilities. Dubai’s main index dropped 5.1% early, while Abu Dhabi’s index fell 3.5% before recovering slightly. By mid-morning, losses eased but remained significant amid rising concerns.
Israel targeted Iran’s nuclear sites, ballistic missile factories, and top military commanders. Officials called this a prolonged operation to stop Tehran’s nuclear weapons program. This sudden escalation increased investor anxiety and caused a sell-off in regional stocks.
Air Arabia shares fell 7.6% as airlines rerouted and canceled flights over airspace spanning Israel, Iran, Iraq, and Jordan. The airline sector faces operational challenges, forcing companies to manage unexpected costs and delays during the crisis.
Meanwhile, oil prices surged more than 6%, hitting the highest levels in nearly five months. Brent crude and US West Texas Intermediate saw their biggest daily gains since 2022. The spike reflects fears about supply disruptions from this key oil-producing region.
Investors also turned to gold, pushing prices to two-month highs. This shows growing demand for safe-haven assets amid rising geopolitical risks. Overall, markets remain highly volatile as tensions escalate in the Middle East.