Gulf stock indexes fell on Tuesday over escalating tensions between Saudi Arabia and the UAE, though the flare-up didn’t dent oil markets.
Saudi forces struck a shipment in Yemen that Riyadh said was bound for an Emirati-backed separatist group. While the UAE vowed to pull its remaining troops out of Yemen, the strike laid bare simmering tensions between the Gulf oil powers, both of which are US allies, over Yemen and broader regional influence.
Crude markets, though, care more about Riyadh and Abu Dhabi maintaining cohesion on OPEC policy, Oilprice.com wrote: OPEC members “can disagree (even loudly) on politics while still coordinating production plans… That dynamic is far more relevant heading into 2026 than any Yemen-related spat.”
