UAE Stocks Close Week Downbeat as Middle East Tensions Expand
Emirati shares closed the last trading session of the week on a downbeat note as escalating Middle East tensions and volatile oil prices take center stage once again.At the close of Friday trading, the FTSE ADX General Index lost 0.127%, while the DFM General Index was 0.208% in the red.US President Donald Trump said in a social media post that Iran will be held responsible and face "major military punishment" if the Houthis attack any ship in the Red Sea. Trump also mentioned that any damage inflicted on ships and cargo by Iran will be paid from its frozen assets."With little-to-no sign of de-escalation, the market is likely to take the path of least resistance for now. This suggests oil prices will only continue to move higher. The key question is at what price level pressure begins to build on the Trump administration to return to the negotiating table," ING said. "The potential supply disruptions facing the market now are larger than at any time during the war. Not only have oil flows through the Strait of Hormuz essentially dried up, but there are clear risks to Saudi oil flows from the Red Sea."Meanwhile, the US Central Command continued its attacks on Iran for the 13th consecutive night, targeting military command centers, drone storage facilities, communication networks, and coastal surveillance sites.Zooming in at home, the UAE will be subject to a 12.5% tariff from the US as part of the latter's efforts to prohibit the import of goods produced through forced labor practices. The tariff, set to take effect on Friday, ranges from 10% to 12.5% and includes over 60 countries.Turning to corporate news, Pure Health Holding (ADX:PUREHEALTH) teamed up with the National Multiple Sclerosis Society to support early diagnosis, enhance patient care, and advance global research for the treatment of Multiple Sclerosis. The Abu Dhabi-listed healthcare services company's shares closed the session 0.90% lower.Dubai Taxi Co.'s (DFM:DTC) first-half profit plummeted 67.7% year over year with a 14.7% decline in revenue due to low airport and tourism-related demand amid the ongoing regional developments in the country. Its shares were 0.94% in the red at the time of closing.
