{"id":104754,"date":"2026-03-02T00:00:00","date_gmt":"2026-03-02T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/?p=104754"},"modified":"2026-03-02T15:24:45","modified_gmt":"2026-03-02T15:24:45","slug":"tadawuls-benchmark-fell-as-middle-east-war-edges-on","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2026\/03\/02\/tadawuls-benchmark-fell-as-middle-east-war-edges-on\/","title":{"rendered":"Tadawul\u2019s benchmark fell as Middle East war edges on"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> <\/strong><strong>Tadawul\u2019s benchmark index TASI slid 2.18% to close at 10.48k points <\/strong><strong>yesterday<\/strong>, recovering from a low of 10.19k during the day as investors actively priced in geopolitical risks. All sectors closed in the red, except for energy and F&B.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Elsewhere in the region: <\/strong>Egypt\u2019s EGX 30 fell 2.5% to 47.98k yesterday, after dropping as much as 5.6% at the open. Markets in the UAE will extend their weekend by two days, while Kuwait suspended trading amid heightened volatility. Sico Capital Group\u2019s research head Chiro Ghosh told us he expects some weakness when those markets reopen.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>\u201cThe market added a higher risk premium after the recent escalation<\/strong>, reflecting concerns around energy stability, trade routes, and capital flows. The sharp decline and break of a key support level suggest a broader reset in risk appetite rather than simple profit-taking,\u201d Sarah Alyasiri, financial markets analyst at CF Trade, tells EnterpriseAM. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The sell-off isn\u2019t hitting all sectors equally.<\/strong> Alyasiri added that the pressure is concentrated on cyclicals \u2014 banks and basic materials \u2014 which are highly sensitive to foreign flows and global growth expectations. Ghosh notes that while the GCC tourism industry had a positive outlook for 2026, particularly with the anticipated GCC-wide visa, an escalation of the conflict may negatively impact the sector, along with real estate, aviation, and telecoms.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Energy is anchoring the index<\/strong>. Higher shipping and ins. costs are baking a risk premium into oil prices, which is supporting energy stocks \u2014 particularly Aramco, which closed up 3.4% \u2014 given their massive index weighting. Ghosh expects a further surge in oil prices when global markets open today as investors closely monitor the status of the Strait of Hormuz.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>While the headline is red, the underlying movement is a rotation into safe havens. <\/strong>Alyasiri notes that fund managers are shifting toward defensive sectors like ins. and healthcare, while Ghosh sees the smart play is in moving toward lower beta names \u2014 including utilities, consumer, and high-dividend stocks \u2014 until there is a clear de-escalation.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>What\u2019s next: <\/strong>The trajectory depends on whether we see actual supply or shipping disruptions. \u201cIf risks remain contained, this pullback could become a selective [entry point],\u201d Alyasiri says. However, if tensions persist, expect a wider sector divergence: energy and defensives will continue to outperform, while cyclicals remain under heavy pressure.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">We\u2019re keeping a close eye on oil prices<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Pundits are still suggesting there\u2019s a risk that oil rockets past USD 100 \/ bbl <\/strong>as Iran looks to choke the flow of crude out of the Gulf. Iran\u2019s Tasnim News Agency claimed that the Strait of Hormuz is \u201ceffectively\u201d closed and some ships <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-02-28\/oil-tankers-avoiding-vital-hormuz-strait-after-us-bombs-iran\" style=\"\" rel=\"noopener\">reported<\/a> receiving a radio broadcast on Saturday \u2014 reportedly from the Iranian navy \u2014 instructing them to leave the waterway as passage is banned.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Brent crude is at USD 75 this morning even after three ships were struck in the region <\/strong><strong>yesterday<\/strong>\u2014 the first <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-03-01\/oman-says-oil-tanker-targeted-off-its-north-coast\" style=\"\" rel=\"noopener\">reported<\/a> maritime attacks of the conflict so far. Attacks have so far been limited to the Arabian Gulf, with the Houthis yet to restart attacks on passing vessels in the Bab El Mandeb strait leading to the Suez Canal.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Oil tankers seem to have stopped moving through Hormuz<\/strong>, with roughly 240 vessels stopping near the chokepoint \u2014 most around Iran\u2019s Bandar Abbas port, according to <a target=\"_blank\" href=\"https:\/\/www.spglobal.com\/energy\/en\/news-research\/latest-news\/crude-oil\/030126-oil-tanker-traffic-halts-in-strait-of-hormuz-amid-gulf-strikes-cas\" style=\"\" rel=\"noopener\">S&P Global<\/a>. Around 130 of those ships were carrying cargo, but none were loaded with crude.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>You can pump it out of the ground, but can you get it to market? <\/strong>While some think a pledge by Opec+ to <a target=\"_blank\" href=\"https:\/\/www.opec.org\/pr-detail\/1619593-1-march-2026.html\" style=\"\" rel=\"noopener\">boost output<\/a> by as much as 206k bbl \/ d starting next month could offer relief, there\u2019s a big catch: the majority of the group\u2019s output comes from nations that are almost entirely reliant on the Hormuz Strait to deliver to the global market. \u201cIn such a scenario, the constraint is not upstream supply capacity but export routes and maritime transit,\u201d Rystad Energy\u2019s Jorge Leon tells EnterpriseAM.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>\u201cThe cost of [covering] ships, containers, and crews, in addition to the refusal of some <\/strong><strong>international ins. companies to [cover] war risks<\/strong>, will put pressure on global trade in the coming period,\u201d former Suez Canal Authority chairman and Suez Chamber of Shipping head Abdel Qader Gaballah told EnterpriseAM.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Ins. premiums are lurching upward:<\/strong> A ship with USD 100 mn worth of goods, which used to pay roughly USD 250k per voyage, will now need to cough up USD 375k, the <a target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/2dc114d0-5bb3-4fae-b538-9a050954549a\" style=\"\" rel=\"noopener\">Financial Times<\/a> reports. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">Riyadh emerges as a travel hub amid airway closure<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The relative calm in Riyadh helped it emerge as an exit point for those stranded in the <\/strong><strong>Gulf<\/strong>, as King Khalid airport remains largely operational despite airspace closures. High-net-worth individuals, senior executives, and their families are <a target=\"_blank\" href=\"https:\/\/www.semafor.com\/article\/03\/01\/2026\/riyadh-becomes-transit-hub-for-worried-rich-fleeing-gulf\" style=\"\" rel=\"noopener\">reportedly driving from Dubai to Riyadh<\/a> and boarding private planes for as much as USD 350k a trip to get out of the region or simply make business trips.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Civilian traffic closures continue<\/strong> for the airspaces of Iran, Iraq, Israel, Kuwait, Qatar, Syria, and Bahrain. As of yesterday, over 3.4k flights have been canceled across seven Middle Eastern airports.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Our budget airlines <\/strong><strong><a target=\"_blank\" href=\"https:\/\/x.com\/flynas\/status\/2028097912173912458?s=20\" style=\"\" rel=\"noopener\">Flynas<\/a><\/strong><strong> and <\/strong><strong><a target=\"_blank\" href=\"https:\/\/x.com\/flyadeal\/status\/2028173906213761339?s=20\" style=\"\" rel=\"noopener\">Flyadeal<\/a><\/strong><strong> have officially suspended several international <\/strong><strong>routes until 3 March<\/strong>, joining an earlier suspension by Saudia. Major regional carriers, including Emirates, Qatar Airways, and Etihad, have suspended all services, with many groundings expected to last until at least this afternoon. The disruption extends to dozens of other airlines such as Turkish Airlines, Oman Air, and Egyptair, which have canceled routes to affected Gulf and Levant destinations.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oil tanker movements through Hormuz seem to have been halted, with roughly 240 vessels stopping near the chokepoint<\/p>\n","protected":false},"author":1,"featured_media":104755,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4693],"tags":[587,10,61,268,4692],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-104754","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-big-story-today","tag-diplomacy","tag-enterpriseam-ksa","tag-iran","tag-israel","tag-the-big-story-today","wpautop","entry"],"acf":{"mongo_id":"c02e0776-ae98-463f-bf82-4f46cff38ed3","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2026\/3\/55.jpg","photo_position":"above","homepage_title":"","full_issue_title":"TASI dips as war edges on","related_issue":[104749],"teaser":"Oil tanker movements through Hormuz seem to have been halted, with roughly 240 vessels stopping near the chokepoint"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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