Most stock markets across the Gulf closed lower on Monday, weighed down by escalating concerns over U.S. President Donald Trump’s aggressive tariff stance and his public criticism of Federal Reserve Chair Jerome Powell.
Last week, Trump intensified pressure on Powell, prompting speculation about the Fed chief’s possible removal. The move has sparked renewed fears about the independence of the U.S. central bank—widely regarded as the most influential in the world—and raised questions over the long-term stability of the U.S. financial system.
In Saudi Arabia, the benchmark index (.TASI) dropped 0.7%, led by a 1% decline in shares of oil giant Saudi Aramco (2222.SE) and a steep 5.5% fall in Dar Al Arkan Real Estate Development (4300.SE). On Monday, Aramco announced it had signed a joint development agreement with Chinese electric vehicle maker BYD to explore cooperation in the new energy vehicle sector.
Dubai’s main share index (.DFMGI) bucked the regional trend, inching up 0.2% as blue-chip developer Emaar Properties (EMAR.DU) gained 0.8%.
In contrast, Abu Dhabi’s index (.FTFADGI) slipped 0.1%, while Qatar’s benchmark (.QSI) shed 0.3%, pressured by a 0.9% drop in Qatar National Bank (QNBK.QA), the largest lender in the Gulf.
Oil prices—closely tied to Gulf market performance—fell by more than 2%, as optimism grew around possible progress in U.S.-Iran negotiations. However, investors remained cautious amid worries that tariffs and ongoing economic friction could dampen global fuel demand.
