Gulf stock markets recorded a mixed performance on March 4 as the ongoing conflict between Iran, Israel, and the United States reverberated across regional bourses. 

Total losses across Persian Gulf markets reached $57.45 bn, equivalent to 1.4% of total market capitalisation, excluding the Tehran Stock Exchange, which has remained closed in recent days due to strikes.

The Kuwait Stock Exchange fell 44 points, or 0.52%, during the March 4 session following an active opening. Trading liquidity totalled KWD 54mn ($175.58mn), with KWD 46.6mn ($151.52mn) concentrated in the premier market, which declined 50 points, whilst the main market absorbed the remaining liquidity and closed down 31 points.

UAE markets exhibited the steepest declines following their reopening, with the Dubai Financial Market falling 4.71% and the Abu Dhabi market dropping 2.88 points. Bahrain's market declined 1.3%, whilst, in contrast, Qatar and Muscat markets posted modest gains of 0.75% and 0.39% respectively. Saudi Arabia's Tadawul All Share Index (TASI) recorded the session's most notable advance, rising 1.2%.

The divergent performance shows varying market sensitivities to regional tensions and domestic fundamentals. In Kuwait, quiet buying dominated across operational stocks, including banks and defensive sectors such as food and telecommunications.

Major ownership stakes and strategic shareholdings remained stable, with some positions even expanding, indicating shareholder confidence in corporate resilience and capacity to weather external shocks and compensate for temporary price declines.

Despite the immediate impact of escalating US-Iranian tensions and threats to Gulf security, regional markets retain substantial financial capabilities and capital reserves.

Both domestic and foreign investors appear committed to maintaining their positions, suggesting confidence in the markets' ability to recover once geopolitical uncertainties stabilise. The presence of deep-pocketed stakeholders unwilling to liquidate holdings under pressure could provide support for market stabilisation in the coming sessions.

The unified stance of Gulf Arab states alongside the US against Iran could instil confidence in investors, given that such unity could accelerate the ongoing conflict toward its conclusion.