Gulf Stocks Drop as U.S. Strike on Iranian General Lifts Tension

(Bloomberg) — Stocks in the Gulf went into retreat as the U.S. killing of Iran’s most prominent general reverberated across the region.Kuwait’s benchmark index dropped more than 4% just minutes after trading began, while there were losses in Abu Dhabi, Dubai and Oman.Geopolitical tension spiked after Iranian General Qassem Soleimani was killed in Iraq last week in a U.S. drone attack. Iranian President Hassan Rouhani told Soleimani’s relatives that the U.S. “won’t see the effects of their mistake today, but they will witness it over many many years to come.” President Donald Trump said late Saturday the U.S. has identified 52 Iranian sites that it would hit if Tehran retaliates.“Investors who were hoping for lower geopolitical tension in the Middle East, North Africa region in 2020 got their hopes dashed on the second day of the year,” said Mohammed Ali Yasin, chief strategy officer at Abu Dhabi-based Al Dhabi Capital Ltd. “2020 will continue to be a year of high geopolitical tensions in our region.”Read more:Trump Ramps Up Iran Rhetoric as De-Escalation Vow Quickly FadesAs Tensions With Iran Escalated, Trump Opted for Most Extreme MeasureOil Industry Braces for Mideast Turmoil After Soleimani KillingU.S. Killing of Soleimani Leaves Trump ‘Totally Unpredictable’To contact the reporter on this story: Filipe Pacheco in Dubai at [email protected] contact the editors responsible for this story: Celeste Perri at [email protected], Paul Wallace, Justin CarriganFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.