Israel’s TA-35 benchmark index advanced 1.2% as of 11:08 Dubai time, led by Bank Hapoalim. Saudi Arabia’s Tadawul All Share Index was up 1%, as Al Rajhi Bank rose.

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The Boursa Kuwait Premier Market Index traded 0.7% higher as of 10:39 a.m. Dubai time, while the MSX30 Index in Muscat slipped 0.6%. Qatar’s benchmark was 0.7% higher.

Irrespective of early Mideast moves, global investors are bracing for market turbulence and don’t rule out a dash into haven assets on Monday, after the US targeted Iranian nuclear sites. The move by President Donald Trump without Congressional approval brought a shock value after he seemed to have indicated he will take two weeks to decide. Money managers are now watching out for Iran’s response, including whether it blocks the Strait of Hormuz — a key passage for oil and gas — and whether it attacks US assets in the region.

“Markets are focused on whether the war spreads to other countries and there is no evidence of that as yet,” said Hasnain Malik, a strategist at Tellimer in Dubai. “The benign interpretation is that the US intervention will accelerate the end of the war. That, of course, remains to be seen’”

Iran vowed to impose “everlasting consequences” for the attacks and said it reserves all options to defend its sovereignty.

Commentators and officials speculated what that response might be: Iran might attack US bases in the region or Israel’s nuclear research center near the desert town of Dimona, or escalate its own nuclear program.

While investors over the past two weeks repeatedly tried to see a silver lining — expecting the conflict to remain regional and not involve the US — that optimism has now been belied. Neither has Trump indicated the attacks are over. He has threatened even greater force if Iran retaliates.

“Short-term, markets such as crude oil will pivot on whether Iran retaliates and widens the war in a way that impacts oil supply versus backing down and offering concessions on its nuclear program,” Malik said. “The biggest risk to the region is a collapse of the regime in Iran and a descent into Syrian-style civil war. US intervention may increase the probability of this.” 

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