Israeli, Saudi Stocks Fall As Middle East Conflict Worsens

Israeli stocks dropped on their first day of trading after Prime Minister Benjamin Netanyahu’s government began airstrikes against Iran. Saudi Arabia’s equity benchmark slid as concerns of a wider conflict gripped the region.

The Tel Aviv Stock Exchange 35 Index fell 1.5% at the open on Sunday, extending last week’s 1.5% decline. The Tadawul All Share Index slid 2.5%. Egypt’s EGX 30 Index sank 7.7%, the most in more than a year on a closing basis. The markets were closed on Friday.

The latest selloff came as Israel and Iran continued to attack each other’s territories for a third day. On Friday, when the hostilities erupted, the shekel tumbled the most in 11 months, while oil prices surged 7%. The worsening conflict also sent shock waves across financial markets, fueling a rush into traditional havens such as gold and dollar.