Dubai, February 15, 2026, 22:12 GST — The market is closed.
- The Saudi benchmark slipped 0.2%, with Al Rajhi Bank dropping 0.5%.
- The Qatar index slipped 0.4%, with Qatar Islamic Bank falling 1.1%.
- Egypt’s EGX30 jumped 3.6%, hitting a new record following a 100 basis point rate cut.
Gulf markets with heavy banking exposure finished in the red Sunday, investors pulling back amid renewed U.S.-Iran tension fears. Saudi Arabia’s main index edged down 0.2%, pressured by a 0.5% slide in Al Rajhi Bank. Over in Qatar, a 1.1% drop in Qatar Islamic Bank helped push the index 0.4% lower. “Currently dominate the landscape,” is how XS.com’s Samer Hasn summed up the mood around conflict risks. Egypt moved the other way: the EGX30 soared 3.6% to a record after a 100 basis-point interest rate cut. (Reuters)
This matters: banks anchor most Gulf benchmarks and usually absorb the initial shock when investors run for safety. With the region opening its trading week early, it often catches geopolitical headlines before Europe or the U.S. react.
The U.S. military is gearing up for potentially weeks of extended operations targeting Iran should President Donald Trump give the order, two American officials told Reuters. That backdrop is adding tension to scheduled talks in Geneva set for Tuesday, where U.S. envoys Steve Witkoff and Jared Kushner will meet Iranian representatives, with Oman stepping in as mediator, according to Reuters. (Reuters)
Gulf banks now face a key question: how long does the risk premium linger? With investors holding back, even light selling pressure hits bank shares—these stocks make up a big chunk of daily trading.
Egypt’s surge highlighted the flip side of the rates equation. Lower borrowing costs and easier credit can boost valuations, yet investors are likely to monitor the currency and inflation closely if risk sentiment falters.
Geopolitics could easily take center stage here, crowding out other concerns. If tensions spike, financial conditions in emerging markets might tighten fast. Egypt’s looser policy stance? That could lose its shine in a hurry if inflation flares up again.
Investors will be eyeing Gulf banks on Monday to see if Sunday’s losses continue. Any fresh hints on U.S.-Iran diplomacy could also move the needle. Oil prices and security updates across the region remain key mood-setters.
Tuesday, Feb. 17 is circled on traders’ calendars—that’s when the U.S. and Iran are set for talks in Geneva. In the meantime, every military maneuver and policy statement is likely to jolt the market.
