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Most Gulf stock markets closed lower on Thursday, as a new round of US strikes on Iranian military sites raised fears of a full-scale conflict.

The United States attacked Iranian coastal defenses and missile sites on Wednesday after reimposing a naval blockade on Iranian ports, while Tehran warned it could impose further restrictions on regional energy exports, declaring it is in an "existential war" with Washington.

The intensity of fighting has escalated since Saturday, when Iran announced the closure of the Strait of Hormuz. Ongoing military operations have also prevented ships from passing through the vital waterway, which before the war carried nearly a fifth of global oil and gas shipments, according to Reuters.

Dubai's main index fell 0.3%, driven by a 2.4% drop in Dubai Islamic Bank shares.

Market analyst Milad Azar at XTB MENA said reports that US operations could be expanded may add further pressure.

Investors remain focused on second-quarter earnings and developments in the Middle East, while uncertainty over Iran and the Strait of Hormuz is likely to weaken sentiment.

In Abu Dhabi, the stock market index fell 0.5%.

Meanwhile, bunker fuel sales at the UAE's Port of Fujairah in the first half of 2026 more than halved compared to last year, after the US-Iran war affected supplies at the major Middle East bunkering hub located near the Strait of Hormuz.

The index in Bahrain fell 0.1% to 1985 points. Oman's index lost 1.2% to 7481 points. In Kuwait, the index rose 0.1% to 9074 points.

The Qatar Stock Exchange remained closed following the death of former Emir Sheikh Hamad bin Khalifa Al Thani.

Saudi Arabia's stock market index rose 0.2% to 10720.28 points, supported by a 0.2% gain in Al Rajhi Bank shares.

Outside the Gulf, Egypt's main EGX30 index rose 0.7%.

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