Middle East stocks mixed after US strikes on Iran

Middle East stock markets showed varied responses on June 22, 2025, following U.S. military actions against Iran’s nuclear sites. Investors are hopeful that U.S. involvement might hasten the end of the Iran conflict, boosting some markets while others dipped. Israel’s TA-35 index climbed 0.8% by mid-afternoon in Dubai, marking six days of gains and heading for its strongest quarter since 2009.

Egypt’s main index also rose, reflecting optimism. However, Kuwait’s premier index fell 0.4%, and Oman’s market dropped 0.2%, as traders worried about regional instability affecting oil exports through the Strait of Hormuz, a key route for global oil trade. Despite the tensions, many Gulf markets stayed steady. Qatar and Saudi Arabia saw small gains, suggesting investors expect limited economic fallout.

Bahrain’s market remained flat. The U.S. strikes have raised concerns about oil price spikes, but some analysts believe the impact may fade if Iran doesn’t retaliate strongly. Saudi Arabia, Qatar, and Oman urged calm, warning of serious regional consequences. Investors are now watching Iran’s next moves closely. If Tehran avoids escalation, markets may stabilize further. For now, the region’s traders are balancing hope for peace with fears of wider conflict, keeping markets on edge.