(Bloomberg) -- Stock gauges in Saudi Arabia, Abu Dhabi, Kuwait and Qatar declined on Sunday as investors weighed rising geopolitical tension in the Gulf.

All equity markets in the Gulf retreated on the final trading session of last week after two oil tankers were damaged in the Gulf of Oman, with the U.S. blaming Iran.

After the incident, Saudi Crown Prince Mohammed Bin Salman said in an interview with the Saudi-owned Asharq Al Awsat newspaper that the kingdom does not seek war in the region, “but will not hesitate in dealing with any threats towards our people, sovereignty, unity and vital interests.”

Some traders hope the recent losses trigger buying and allow for quick profit-taking, according to Issam Kassabieh, senior financial analyst at Mena Corp in Dubai. “Still, the political tensions are present and quite heightened,” he said.

MIDDLE EASTERN MARKETS

  • The Tadawul All Share Index falls 0.5%, dropping below its 50-day moving average
    • Notable declines: Al Rajhi Bank -0.7%; Sabic -1%; Samba Financial Group -1.4%
    • The Invesco MSCI Saudi Arabia UCITS ETF, the largest exchange-traded fund focused on Saudi shares, registered an outflow of $215m on June 12, before the incident with the tankers
      • ETF has still had net inflows of about $1.2b this year
    • MORE: Foreigners Bolster Saudi Stocks as Tension in the Region Mounts
  • Kuwait’s main equities index down 0.1% as of 11:40 a.m. local time
  • In Dubai, the DFM General Index rises slightly, boosted by the 0.6% gain of Dubai Islamic Bank
    • The U.A.E.’s sovereign wealth fund boosted its stake in the Dubai-based telecom operator DU, snapping a stake valued at about $630m. The shares fell 0.4% to AED5
    • The Dubai Economy Tracker Index rose to 58.5 in May versus 57.9 in April
  • QuickTake: Why the Strait of Hormuz Is World’s Oil Flashpoint

To contact the reporter on this story: Filipe Pacheco in Dubai at fpacheco4@bloomberg.net

To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net, Paul Wallace, Abbas Al Lawati

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