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UAE Shares Blink Red as Renewed US-Iran Strikes Spook Investors

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Markets in the United Arab Emirates started the new trading week in negative territory as risks of renewed escalation between the US and Iran weighed on sentiment.

At the close of Monday trading, the FTSE ADX General Index lost 0.369%, while the DFM General Index declined 0.793%.

Oil prices rose as the US struck two Islamic Revolutionary Guard Corps rocket launchers on Larak Island in the Strait of Hormuz, targeting minelaying forces. Iran retaliated by attacking US bases in Jordan and claiming drone strikes on the Al Minhad Air Base in the UAE.

Meanwhile, the UAE's Ministry of Defence said it identified and intercepted an Iranian unmanned aerial vehicle but denied reports of strikes on Al Minhad Air Base.

"Oil prices started the week stronger following the first military strikes between the US and Iran in a month. ICE Brent briefly moved back above US$90/bbl in early morning Asia trading," ING said. "This reinforces concerns about a prolonged stalemate between both sides and, as a result, disruptions to energy flows from the Persian Gulf."

Back home and on the corporate front, Alpha Dhabi Holding (ADX:ALPHADHABI) shares closed the session 1.17% in the red. The Abu Dhabi-listed investment holding company aims to double its capital commitment in the Mubadala Capital-managed Micad Credit joint venture to $1 billion and increase its ownership to 40% from 20%.

United Securities affirmed its hold rating on Emirates Central Cooling Systems (DFM:EMPOWER), d/b/a Empower, after its second-quarter net profit came in line with the investment manager's expectations. The cooling services company's revenue, however, was 16% below the forecast. Empower closed the session 0.63% lower.

What else is happening in Asia Markets?

Asia Markets

Singapore Shares Open Lower on Fed Rate Hike Concerns, Renewed US-Iran Tensions

Singapore shares opened on a weak note on Monday, pressured by expectations of a U.S. interest rate hike next month following hawkish comments from Federal Reserve Chair Kevin Warsh.The Straits Times Index (STI) opened down 13.79 points, or 0.24%, at 5,686.140.In his speech at the Jackson Hole Symposium on Friday, Warsh expressed concern over persistent inflation levels and underscored the central bank's determination to steer inflation back toward its 2% target.Investor sentiment was further dampened by geopolitical concerns, following renewed military exchanges between the U.S. and Iran that pushed crude oil prices higher.

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Asia Markets

Tadawul Shares End Sunday Lower; Saudi Arabia to Reportedly Head to Turkey for Defense Pact Talks

The Tadawul All Share Index started the week at 0.71% in the red on Sunday ahead of Saudi Arabia's reported defense meeting with Turkey and Pakistan on Monday.Sources said that officials from Saudi Arabia, Turkey, and Pakistan are set to meet in Istanbul to discuss their Mecca Joint Defence Agreement that was entered into in August. The talks will focus on international security issues, as well as boosting the countries' defense capabilities, among other topics.Also making headlines during the session is US President Donald Trump's announcement regarding an agreement with a private business that will give the US majority control of Venezuela's proven oil reserves.Back at home, Naas Petrol Factory (SASE:9609) and Al Kuzama Trading (SASE:9636) released their financial statements for the first half of 2026. Naas logged lower results for the six-month period, while Al Kuzama reported a decline in attributable net profit and a rise in revenue."Revenue increased by 5.21% to SAR 158 million, compared to SAR 150 million in the corresponding period of the previous year, driven by growth in the restaurant operations of the existing subsidiaries," Al Kuzama said in its report. "The [net profit] decrease was mainly attributable to a decline in the gross profit margin from 20.7% to 14.2%, due to regional and global geopolitical conditions and their direct impact on food product costs, in addition to higher general and administrative, selling, and marketing expenses."Naas Petrol closed 1.64% higher, while Al Kuzama shares fell 7.62% at closing.Meanwhile, Knowledge Tower Trading (SASE:9551) shares ticked down 3.66% as it entered into a three-year deal to deliver educational curricula and textbooks to Maarif Education Co.

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Asia Markets

Exchange-Traded Funds Fall, US Equities Mixed After Midday

Broad Market IndicatorsBroad-market exchange-traded funds IWM and IVV were lower. Actively traded Invesco QQQ Trust (QQQ) eased 0.5%.US equity indexes traded mixed, while government bond yields advanced after Federal Reserve Chairman Kevin Warsh said inflation is the more concerning part of the central bank's dual mandate, recommitting to the 2% inflation goal.EnergyIShares US Energy ETF (IYE) added 0.3% and the State Street Energy Select Sector SPDR (XLE) rose 0.5%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) fell 1.1%; iShares US Technology ETF (IYW) and iShares Expanded Tech Sector ETF (IGM) also edged lower.The State Street SPDR S&P Semiconductor (XSD) was down 3.6%, while iShares Semiconductor (SOXX) shed 2.9%.FinancialThe State Street Financial Select Sector SPDR (XLF) added 0.5%. Direxion Daily Financial Bull 3X Shares (FAS) advanced 1.3%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), declined 1.2%.CommoditiesCrude oil fell 0.1%, and the United States Oil Fund (USO) dipped 0.1%. Natural gas eased 1.3%, and the United States Natural Gas Fund (UNG) was down 0.9%.Gold on Comex slipped 3.1%, and the State Street SPDR Gold Shares (GLD) was down 2.8%. Silver fell 2.9%, and iShares Silver Trust (SLV) declined 3.5%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) added 0.2%. The Vanguard Consumer Staples ETF (VDC) gained 0.4%, while iShares Dow Jones US Consumer Goods (IYK) was up 0.4%.The State Street Consumer Discretionary Select Sector SPDR (XLY) added 0.8%. VanEck Retail ETF (RTH) was up 0.7%, and the State Street SPDR S&P Retail (XRT) rose 0.6%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) eased 0.4%. iShares US Healthcare (IYH) and Vanguard Health Care ETF (VHT) were also lower. IShares Biotechnology ETF (IBB) lost 2.5%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) fell 1%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were also in the red.CryptocurrencyIn midday activity, bitcoin (BTC-USD) dropped 2.7%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) shed 2.6%, ProShares Ether ETF (EETH) was down 2.2%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) gained 1.7%.

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