MUSCAT : The latest U.S. tariff package, alongside a significant fall in crude prices, has sent shockwaves across the GCC region, affecting key markets in the Middle East.

According to regional and global media reports, Saudi Arabia’s Tadawul Index plummeted over 6 percent, while Dubai’s Financial Market saw a drop of 5 percent on Monday, continuing the trend of steep losses observed over the weekend. In Abu Dhabi, the securities market fell by 4 percent, and other GCC markets, including Kuwait and Bahrain, followed suit with near 1 percent declines. The Qatar Stock Exchange experienced losses of nearly 2 percent.

The sharp drop in oil prices has particularly hit energy-dependent economies in the region. Brent crude oil, which has seen a drop of nearly 15 percent in the last five days, now trades at just over $63 per barrel—almost 30 percent below its price a year ago. This significant reduction in oil prices, compounded by the impact of U.S. tariffs, is pressuring the economies of Gulf states such as Saudi Arabia, the UAE, and Kuwait, where oil exports are a primary source of revenue.

Adding to the region’s woes, the new tariffs imposed by the U.S. on global imports have extended their reach to the Gulf Cooperation Council (GCC) countries. The GCC nations—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE—are facing a 10 percent tariff on their exports to the U.S. Other Middle Eastern countries, including Iraq and Syria, are seeing even steeper rates, further escalating the pressure on regional markets.

Analysts predict that these tariff measures could destabilise international trade and exacerbate global economic uncertainty.

However, analysts remain optimistic about the longer-term outlook for the region, especially for oil-exporting countries. The MENA region’s strong growth potential, driven by economic diversification efforts and structural reforms, provides some cushion against the immediate economic challenges posed by global trade tensions and oil price declines.

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