Bengaluru, Reuters — UAE stock markets fell on Monday after Iran warned it would target energy and water infrastructure across the Gulf if U.S. President Donald Trump carried out his threat to attack Iran’s electricity grid.
Trump on Saturday said he would “obliterate” Iran’s power plants if Tehran did not fully reopen the Strait of Hormuz within 48 hours, a sharp escalation after he had earlier spoken of “winding down” the war now in its fourth week.
After more than three weeks of intense U.S. and Israeli airstrikes that have degraded Iran’s missile production and launch capabilities, Tehran has shown it still retains retaliatory capacity. The regional conflict has pushed up energy prices, disrupted air travel and hit shipping through the Strait of Hormuz.
Dubai’s main index fell 2.7% in early trade, led by a 4.6% drop in blue-chip developer Emaar Properties and a 2.9% decline in top lender Emirates NBD. Abu Dhabi’s benchmark slipped 1.6%, with real estate giant Aldar Properties down 5% and Abu Dhabi Commercial Bank off 4.9%.
Utilities were also hit: Abu Dhabi-listed water and power firm TAQA fell 3.6%, while Dubai Electricity and Water Authority was down 0.8%.
Adnoc Gas slid 2.7% after the company said it had made temporary adjustments to production of liquefied natural gas and export-traded liquids in response to ongoing shipping disruption in the Strait of Hormuz. “Operations are continuing safely across ADNOC Gas plc’s asset base,” the company said. “Following debris falling near certain facilities, inspections confirmed no injuries and no impact to core processing integrity.”
Year-to-date, the Dubai index’s losses widened to 10.7% and Abu Dhabi’s to 5.9%, LSEG data showed.
