Gulf Stocks Slip on US–Iran Escalation Fears; Egypt Hits Record After 100bp Rate Cut

Most Gulf Cooperation Council (GCC) equity markets closed lower as investors stayed cautious amid rising concerns over a potential escalation involving the United States and Iran. The risk of wider regional tensions kept sentiment fragile and encouraged a more defensive stance.

In contrast, Egypt’s benchmark index rose sharply to a fresh record high after the central bank delivered a 100 basis point interest-rate cut, a move investors read as supportive for liquidity and domestic growth expectations.

Market participants said the divergence highlights how geopolitics can weigh on risk appetite in the Gulf, while policy easing can provide a powerful local catalyst elsewhere in the region.

What investors are watching next

• US–Iran headlines: any signs of escalation or de-escalation that could reshape regional risk pricing.
• Oil sensitivity: whether crude reacts to shipping and supply-risk signals.
• Egypt policy follow-through: the impact of lower rates on banks, real estate and consumer sectors.