UAE shares fall on Iran's warning of retaliation against Gulf water and energy infrastructure
The stock markets of the United Arab Emirates fell on Monday, 'after Iran warned that it would attack energy and water infrastructure in the Gulf region if U.S. president Donald 'Trump followed through with a threat to attack its electricity grid.
Trump threatened on Saturday to "obliterate", Iran's nuclear power plants, if Tehran does not reopen the Strait of Hormuz in 48 hours. This is a significant step up from the day before when he spoke about "winding down" this war which has now entered its fourth week.
Tehran has demonstrated its ability to effectively retaliate after more than three weeks intense U.S. airstrikes and Israeli strikes that have degraded Iran’s missile production capabilities and launch capability. The regional conflict is causing sharp rises in energy prices and disrupting air travel. It has also severely affected shipping operations across the Strait?of?Hormuz.
Dubai's main stock index fell 2.7% early in the morning, due to a drop of 4.6% in Emaar Properties and a fall of 2.9% in Emirates NBD Bank.
Abu Dhabi's benchmark indices fell 1.6%, with Aldar Properties falling 5% and Abu Dhabi commercial?Bank falling 4.9%.
Abu Dhabi National Energy Company, better known as TAQA, a water and electricity firm listed in Abu Dhabi has declined by?3,6%. Dubai Electricity and Water Authority fell by 0.8%.
Adnoc Gas' stock fell?2.7% following a statement from the firm that it had made temporary adjustments in its production of liquid natural gas (LNG) and export-traded fluids?in response to the ongoing shipping disruptions on the Strait of Hormuz.
ADNOC Gas stated that "operations are proceeding safely throughout ADNOC Gas plc’s asset base." Inspections conducted after debris fell near certain facilities confirmed that no injuries or damage to core processing integrity were caused.
According to LSEG, the Dubai index has lost 10.7% year-to date, while Abu Dhabi is down 5.9%. (Reporting and editing by Janane Vekatraman in Bengaluru, Mohd Edwardrees)
(source: Reuters)
