MIDEAST STOCKS-Gulf stock markets close lower after Israel's airstrike in Qatar

By Amna Mariyam

Sept 10 (Reuters) - Major Gulf stock markets closed slightly lower on Wednesday after Israel's airstrike in Qatar targeting Hamas leaders, reflecting cautious sentiment but no signs of broad risk-off positioning as investors appeared to price the event as a one-off.

Hamas said five of its members had been killed in the attack, including the son of Hamas's exiled Gaza chief and top negotiator Khalil al-Hayya.

The attack, which Doha described as "treacherous," was widely criticized by Gulf states, the European Union, and drew a sharp rebuke from U.S. President Donald Trump, who said he was "very unhappy about every aspect" of the attack.

Qatar's benchmark index .QSI fell 0.3%, dragged down by broad-based sectoral losses, with the region's largest lender, Qatar National Bank QNBK.QA losing 0.5%.

Qatari Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani reaffirmed Doha’s commitment to mediation, calling it “part of the Qatari identity,” and vowed that the strike would not deter its role.

Qatar, along with Egypt and the U.S., has been a key mediator in the nearly two-year Gaza conflict, which began on October 7, 2023, when Hamas killed 1,200 Israelis and took around 250 hostages. Since then, Israel’s military campaign has killed over 64,000 Palestinians, according to Gaza health authorities.

Saudi Arabia's benchmark index .TASI dipped 0.3% hurt by broad-based fallout. Oil giant Saudi Aramco 2222.SE shed 0.6% to eye its worst day in more than half a decade.

Aramco secured over $16.5 billion in orders for its two-part Islamic bond, part of a planned debt raise aimed at leveraging its balance sheet amid weaker oil prices.

Crude prices rose after Israel's Qatar attack and U.S calls for tariffs on Russian oil imports. But, "recent rebound in oil prices remains insufficient to support the markets, as a clear and sustained recovery has not yet been confirmed," said Joseph Dahrieh, Managing Principal at Tickmill.

Dubai's main index .DFMGI fell 0.6% to its steepest level in nearly two months, hit by a 2% drop in Emirates NBD Bank ENBD.DU.

Abu Dhabi index .FTFADGI eased 0.3%, posting its fourth straight session of losses.

Real estate led the decline, with Aldar Properties ALDAR.AD sliding 1.5%.

Regional investors have been navigating months of geopolitical strain, and the session's limited market reaction suggests the strike is being viewed as a tactical disruption rather than a structural shift.

In contrast to its regional peers, Egypt's blue-chip index .EGX30 advanced 0.8%, boosted by a slowdown in annual urban inflation to 12% in August, extending a two-year downward trend amid tight monetary policy.

The easing inflation supports Egypt’s economic outlook and could pave the way for further central bank rate cuts, Dahrieh added.