Gulf markets in red as new tariff war looms
May 25 (Reuters) - Saudi stocks performed the worst in a declining Gulf market on Sunday following the latest tariff threat by the U.S. President on European Union goods, while Israel's latest assault on Gaza kept the region on edge.
Trump's statement on Truth Social on Friday that he is recommending a 50% tariff from June 1 on all EU goods sent global markets roiling.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped for a third straight session, falling 1.7%% to 10,999, its lowest level since November 2023 with all sectors in the red. Al Rajhi Bank(1120.SE), opens new tab, the world's largest Islamic lender, lost 2% and ACWA Power (2082.SE), opens new tab declined 7.8%.
Among other losers, Saudi National Bank(1180.SE), opens new tab, the kingdom's largest lender, dropped 2.8% and Saudi state oil company, Aramco (2222.SE), opens new tab, shed 0.6%.
Aramco is exploring potential asset sales to free up funds, two people with knowledge of the matter said on Saturday.
The Qatari benchmark index (.QSI), opens new tab snapped its six-session winning streak and fell 0.4% with almost all of its constituents posting losses. Qatar National Bank(QNBK.QA), opens new tab, the largest bank in the region, slipped 0.9% and Qatar Gas Transport (QGTS.QA), opens new tab declined 1.5%.
However, Commercial Bank (COMB.QA), opens new tab advanced 3% after the lender on Thursday approved a buyback of up to 10% of bank's fully paid-up issued shares.
Meanwhile, the region remained on edge as Israeli military strikes killed at least 23 Palestinians across the Gaza Strip on Sunday.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was up for a fourth consecutive session, rising 0.2% with E-Finance for Digital(EFIH.CA), opens new tab gaining 3.2% and Palm Hills Development (PHDC.CA), opens new tab advancing 3.4%.
The developer, PHD, signed an agreement to develop 1.87 million SQM plot of land in Abu Dhabi.
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