Gulf Stock Markets Decline as Oil Prices Come Under Pressure

Market Overview

Most stock markets in the Gulf region experienced declines on Monday, January 5, 2026, as global oil prices faced downward pressure. The Brent crude benchmark fell 0.8% to US$60.23 per barrel by 08:01 GMT, dropping 52 cents from its previous level. This price movement reflects ongoing investor concerns about global oil supply glut amidst rising geopolitical tensions.

Market Dynamics

Investors are currently balancing two major factors: the potential for increased global oil supply and escalating geopolitical risks. The downward pressure on oil prices is primarily attributed to concerns about oversupply in the global market. However, geopolitical tensions continue to provide some support to oil prices, limiting further declines.

Regional Impact

The decline in oil prices had an immediate impact on the Gulf region's stock markets, which are closely tied to oil revenues. The overall market sentiment remained cautious as investors await further developments in both the global oil market and geopolitical landscape.