UAE MARKETS CLOSE MIXED AS U.S.-IRAN TENSIONS MOUNT

Developing story: UAE market levels, oil prices, sanctions details and Hormuz traffic may change as regional trading resumes and Washington announces its Iran measures.

Stock markets in the United Arab Emirates closed mixed Friday as investors weighed U.S. threats of tougher sanctions against Iran, low shipping traffic through the Strait of Hormuz and elevated oil prices. Reuters reported that Abu Dhabi’s benchmark index fell 0.7 percent, while Dubai’s main index rose 0.3 percent after two losing sessions.

The market split reflects the UAE’s position at the center of the Gulf risk map. The country is a financial and logistics hub, an energy producer, a security partner of the United States and a commercial actor with historic links to Iran. A single regional headline can therefore affect ports, banks, insurers, energy companies and investor sentiment at the same time.

Abu Dhabi’s decline was driven by weakness in major holdings. Reuters reported that International Holding Company fell 1.9 percent and Alpha Dhabi Holding dropped 1.7 percent. Dubai’s gain was supported by Emirates Integrated Telecommunications and Mashreq Bank, showing that company-specific moves still matter inside the broader geopolitical pressure.

The Iran factor remains dominant. Treasury Secretary Scott Bessent said Washington would impose the toughest sanctions in history on Iran, while China said sanctions would not help resolve the issue. The UAE has also suspended trade and financial transactions with Iran after saying Iranian missiles targeted maritime traffic, a claim Tehran denies.

Hormuz traffic adds another measure of investor concern. Kpler data cited by Reuters showed seven commodity ships sailed through the strait on Thursday, half the previous day’s tally. Before the war, Hormuz carried roughly one-fifth of global oil consumption. Low traffic therefore affects expectations for export flows, insurance costs and broader Gulf business confidence.

Oil prices are usually supportive for Gulf markets because they improve state revenue and liquidity. But this rally is complicated because it is being driven by disruption risk. Higher crude can help fiscal balances while also signaling shipping danger, inflation pressure and the possibility of more military or economic escalation.

Both Dubai and Abu Dhabi posted weekly losses for a second consecutive week, according to LSEG data cited by Reuters. That points to a market still digesting risk rather than fully reassured by higher oil or isolated company gains.

What is confirmed is that UAE markets ended mixed Friday under pressure from U.S.-Iran tensions and weak Hormuz traffic. What remains unresolved is whether local markets can separate themselves from the conflict or whether sanctions, shipping restrictions and Gulf diplomatic rifts keep weighing on investor confidence.

Fact-check date: August 21, 2026. Article type: News. Sources: Reuters; Kpler; LSEG. Developing note: UAE market levels, oil prices, sanctions details and Hormuz traffic may change as regional trading resumes and Washington announces its Iran measures.