On Monday, most stock markets in Gulf countries experienced declines, particularly Dubai's stock exchange, which recorded significant losses. This downturn is attributed to the ongoing American-Israeli war actions against Iran, alongside a sharp increase in oil prices, which have soared by more than 11%. Such shifts in the markets are occurring due to diminishing supply and rising fears about prolonged disruptions in shipping through the Strait of Hormuz, which is a crucial passage for global oil transport.

According to reports from Reuters, the prevailing geopolitical tensions within the region have directly influenced investor sentiment in Gulf financial markets. Investors are closely monitoring developments in the conflict, especially regarding its potential implications for global energy pathways. The impending sense of unrest has prompted caution among market players, who are acutely aware of the risks associated with further escalation of the military actions in the area.

In light of this escalating situation, U.S. President Donald Trump remarked that he is not interested in negotiating with Iran and suggested that the war would only conclude when Iran has lost its effective military capacity and current leadership. Additionally, political developments within Iran have exacerbated the situation, with the selection of Mojtaba Khamenei as the new Supreme Leader following his father, Ali Khamenei, signaling continued dominance of the hardline conservative faction. This evolution in leadership undermines hopes for an imminent de-escalation in tensions, leaving markets to navigate a volatile landscape characterized by uncertainty and instability.