Stock markets across the Gulf region experienced a downturn in early trading on Sunday, October 25, 2026, as escalating military tensions between the Saudi-led coalition and Yemen’s Iran-aligned Houthi movement unnerved regional investors. The sell-off affected major benchmarks, particularly in Riyadh and Doha, reflecting heightened concerns over geopolitical stability in the Middle East during the first trading session of the week.
Saudi Arabia’s benchmark TASI index led the regional decline, dropping 1.1% in the opening hours. The downturn was significantly influenced by a retreat in shares of the state-owned energy giant Saudi Aramco, which saw its stock price fall by 1.2%. As a bellwether for the Saudi economy and a global leader in the oil sector, Aramco’s performance often dictates the broader market’s direction, and its decline on Sunday underscored the immediate impact of the security situation on investor confidence.
In Qatar, the main stock index eased by 0.3%. The losses in Doha were punctuated by a 1.1% drop in the shares of Qatar National Bank (QNB). As the largest lender in the Gulf region, QNB’s stock movement is closely watched by regional and international investors as a barometer for the health of the Middle Eastern financial sector and its vulnerability to external shocks.
The market volatility follows reports of intensifying clashes between the Saudi-led military coalition and Houthi forces. The conflict in Yemen has remained a persistent source of regional instability, with periodic escalations frequently resulting in cautious trading behavior across the Arabian Peninsula. Sunday’s session highlights the continued sensitivity of regional bourses to military developments, as participants weigh the potential risks of a broader confrontation.
Market participants typically view early Sunday trading in the Gulf as a key indicator of regional sentiment following weekend developments. With the TASI and the Qatari index both starting the week in negative territory, the focus remains on the trajectory of the ongoing clashes and whether the indices will find support as the trading week progresses.
