Middle East Markets Plunge Amid Tariff Shock, Oil Price Drop

Middle Eastern stock markets have suffered significant losses due to the combined effects of new U.S. tariffs and a sharp decline in oil prices, a situation described as a 'regional bloodbath.' The Dubai Financial Market and Abu Dhabi Securities Exchange reported losses of around 6% and 4%, respectively, while Saudi Arabia's Tadawul All Share Index fell over 6%, marking its steepest drop in months. Brent crude oil prices have plummeted nearly 15%, now hovering just above $63 per barrel, which poses a serious threat to the finances of energy-dependent economies in the Gulf Cooperation Council. Analysts warn that the tariffs, which affect several Gulf states with a 10% rate, could destabilize international trade and challenge their economic diversification efforts. The turmoil reflects broader concerns about the vulnerability of these economies to fluctuating oil prices and external trade policies. This market instability underscores the precarious position of the region amid evolving global economic dynamics.