The golf markets collapse due to tensions between the United States and Iran, Aramco reaches its lowest level since the IPO

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DUBAI (Reuters) – Gulf stocks fell sharply in the late afternoon of trading on Sunday, with Kuwait and Saudi Arabia stocks experiencing the largest losses.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Shares of oil giant Aramco <2222.SE>, which listed last month in a record initial public offering (IPO), fell 1.7% to hit the lowest level since it started trading on Dec 11. "data-reactid =" 23 "> Shares in the oil giant Aramco <2222.SE>The company, which was listed on the stock exchange last month, fell 1.7%, the lowest level since the start of trading on December 11.

Iranian military commander Qassem Soleimani, the architect of the Tehran overseas operations, was killed in a US drone attack in his convoy at Baghdad Airport on Friday.

Tehran views the murder as an act of war, which poses a regional fire.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The Kuwaiti index, the best performer in the region in 2019, what was down nearly 4.1%, while Saudi stocks <.TASI> plunged 2.2%. "data-reactid =" 26 "> The Kuwaiti index, which performed best in the region in 2019, declined nearly 4.1%, while Saudi stocks fell <.TASI> fell 2.2%.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Dubai stocks <.DFMGI> were down 3.1% and the Abu Dhabi index <.ADI> fell 1.41%. "data-reactid =" 27 "> Dubai shares <.DFMGI> were down 3.1% and the Abu Dhabi index <.ADI> fell 1.41%.

Aramco shares fell to 34.55 riyals per share, the lowest since the start of trading last month.

"A war between the United States and Iran could lower global GDP by 0.5 percentage points or more, primarily due to the collapse of the Iranian economy, but also due to the effects of an increase in oil prices," said Jason Tuvey, Senior Economist Emerging Markets at Capital Economics said in a note last week.

He said such a conflict would likely put pressure on Middle East equity and bond markets, but the Gulf States currency pegs to the US dollar would likely remain intact.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Oil prices jumped to $ 63.05 a barrel on Friday, their highest level in more than three months, after Soleimani's killing sparked fears that conflict in the region could disrupt global oil supplies. "data-reactid =" 31 "> Oil prices rose to $ 63.05 a barrel on Friday, the highest level in more than three months after Soleimani's killing raised fears that regional conflicts could disrupt global oil supplies.

(Reporting by Saeed Azhar and Davide Barbuscia; editing by Jason Neely and Raissa Kasolowsky)