Middle East Markets Reel from Tariff Impact and Oil Price Plunge

Middle East stock markets face a downturn as new US tariffs and a decline in oil prices hit energy-dependent economies. Regional stock exchanges, including those in Dubai, Abu Dhabi, and Saudi Arabia, posted significant declines. Pakistan also struggles under high US tariffs, prompting potential negotiations.

Middle East stock markets faced sharp declines on Monday amidst the United States' new tariff policy and a significant drop in oil prices. These factors are exerting pressure on energy-reliant economies and government finances in the region. Brent crude oil prices have plunged nearly 15% over five days, now just over $63 per barrel.

Several countries in the Middle East, including those in the Gulf Cooperation Council, are grappling with heightened tariffs alongside falling oil revenues, adding strain to their economic models. Accounting firm PwC warns that such measures, along with potential retaliatory actions, could destabilize international trade.

Stock exchanges across the region, notably in Dubai, Abu Dhabi, and Saudi Arabia, reported substantial losses, reflecting the broader economic impact. The Qatar Stock Exchange and Boursa Kuwait experienced similar declines. Meanwhile, Pakistan, confronted by US tariffs of up to 29%, is also in turmoil, as its stock exchange suspended trading following a sharp index drop.

(With inputs from agencies.)