Middle Eastern Markets Drop Sharply Amid Israel-Iran Conflict: On Sunday, June 15, 2025, Middle Eastern markets dropped sharply due to rising Israel-Iran tensions. Egypt’s EGX 30 fell 7.4%, its worst decline in years. Israel’s and Saudi Arabia’s markets also dropped by 1.7% and 3.6%.
The conflict worsened after Israel attacked Iranian oil refineries. Investors fear a wider war, causing panic selling. Oil and gold prices surged as traders sought safer assets. The crisis has disrupted global markets, showing how regional conflicts can hurt economies worldwide.
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Middle Eastern Markets Drop Sharply Amid Israel-Iran Conflict: Insights
- Egypt’s EGX 30 plunged 7.4%, with all stocks declining.
- Israel’s market dropped 1.7%, but defense stocks like Elbit Systems rose.
- Saudi Arabia’s index fell 3.6%, though Aramco gained due to higher oil prices.
- Oil and gold prices jumped as investors moved to safe-haven assets.
- Nuclear talks between Iran and the U.S. were canceled, worsening tensions.
Background
The Israel-Iran conflict has been escalating for weeks. Israel recently expanded attacks to hit Iran’s oil refineries. This marks the first major strike on Iran’s energy sector since the 1980s. The attacks raised fears of a full-scale war. Investors worry about supply chain disruptions and higher oil prices.
Past conflicts in the region have often led to market instability. This time, the sell-off was swift and severe.
Main Event
Middle Eastern markets dropped sharply on Sunday, June 15, 2025, as tensions spiked. Egypt’s EGX 30 led losses, sinking 7.4%. The Egyptian pound also weakened to 50.6 against the dollar. Israel’s stock market fell 1.7% but rebounded slightly. Defense firm Elbit Systems rose 0.6% due to higher demand for weapons.
Nearly all stocks declined in Saudi Arabia, pushing the index down 3.6%. However, Aramco rose 1.2% as oil prices surged. Kuwait and Qatar also saw losses.
Israel struck two Iranian oil refineries, causing fires. The attacks targeted South Pars and Fajr Jam refineries. Iran has vowed retaliation, deepening fears of a wider war.
Greek and UK maritime officials have alerted commercial ships traveling through the vital Strait of Hormuz to exercise heightened caution.
Photo Credits: AP.
Implications
The drop in the Middle Eastern market affects many groups. Investors face heavy losses. Businesses may delay expansion plans. Governments must stabilize economies. Oil prices could stay high, raising global inflation. Travel and trade may also suffer. If the war spreads, markets could crash further.
Conclusion
The drop in Middle Eastern markets reflects deep investor fear. If the conflict worsens, more losses may follow. Experts warn of prolonged instability. Markets will watch for signs of de-escalation. For now, caution rules the region.
