Gulf stock markets declined on Monday as the war between Iran and its regional adversaries entered its third week, intensifying geopolitical tensions. Key indices like the Dubai and Abu Dhabi markets fell by 0.8% and 1.2% respectively, reflecting investor caution amid fears of prolonged conflict. The Saudi Tadawul Index also dipped 0.5%, with energy and financial sectors underperforming. Analysts attribute the downturn to heightened risks of oil supply disruptions and potential spillover effects on global trade routes. The decline signals growing unease among traders about the economic fallout from sustained military clashes. Geopolitical uncertainty often drives volatility in Gulf equities, as regional conflicts directly impact energy markets and investor sentiment. With oil prices hovering near per barrel, market participants are closely monitoring developments for signs of escalation or de-escalation. For Gulf investors, the situation underscores the need to hedge against geopolitical risks. Energy-dependent economies like Saudi Arabia and the UAE could face indirect impacts through fluctuating oil demand. Traders should watch for updates on military movements, sanctions, and diplomatic efforts in the coming days, which could trigger further market swings.