Dubai and Abu Dhabi exchanges reopened after a two-day closure amid heightened regional tensions following a wave of Iranian strikes, sparking a sell-off in UAE equities and driving up oil and defense sector volatility. Global markets reacted with caution as risk indicators surged.
- UAE markets reopened after a two-day closure due to Iranian strikes
- ADXGI fell 3.2%, DFM General Index dropped 2.8%
- ADNOC Gas and Dana Gas declined 5.1% and 4.7%
- EDGE Group shares fell 6.3% on defense sector concerns
- Brent crude rose 4.3% to $89.60 per barrel
- VIX surged to 28.4, signaling heightened market volatility
UAE stock markets resumed trading on Thursday after a two-day closure triggered by a series of Iranian attacks targeting strategic infrastructure across the Gulf. The reopening saw immediate declines, with the Abu Dhabi Securities Exchange General Index (ADXGI) falling 3.2% in early trading. Dubai's main benchmark, the DFM General Index, dropped 2.8%, led by losses in energy and defense-linked firms. The sell-off reflects growing investor anxiety over escalating regional conflict. Energy stocks were particularly affected, with ADNOC Gas and Dana Gas shedding 5.1% and 4.7%, respectively, amid concerns over potential disruptions to oil exports from the region. Defense firms such as EDGE Group saw a 6.3% decline as market participants reassessed the risk profile of regional security investments. On the global front, oil prices reacted sharply, with Brent crude rising 4.3% to $89.60 per barrel, while West Texas Intermediate climbed to $85.20. The VIX index, a key measure of market fear, spiked to 28.4—its highest level since late 2024—signaling broad-based risk aversion. U.S. equity ETFs showed mixed reactions, with SPY down 0.9% and TQQQ shedding 2.1% amid concerns over supply chain and geopolitical spillovers. The sell-off underscores the fragility of Gulf markets amid ongoing regional instability. Investors are now closely monitoring developments in the Persian Gulf, with energy and defense sectors expected to remain under pressure until geopolitical tensions ease. The closure and reopening cycle also highlights the growing impact of military incidents on financial market continuity.