Gulf stock markets have split dramatically since the Iran war began, creating a stark contrast between regional bourses. Dubai has emerged as the worst-performing global market over the past month, while Muscat has become the best-performing bourse worldwide. This divergence highlights how geopolitical tensions are reshaping investment patterns across the Middle East.

The split reflects different economic exposures and investor sentiment toward Gulf nations amid escalating regional conflict. Dubai's financial sector, heavily reliant on international business and tourism, has suffered from heightened uncertainty and capital flight. Meanwhile, Oman's capital has benefited from its geographic position and perceived stability, attracting investors seeking safe havens during the crisis.

This divergence creates both risks and opportunities for investors. The performance gap between Dubai and Muscat underscores how localized factors can override broader regional trends. Market participants are now closely watching whether this split will persist or whether other Gulf capitals will follow one of these two divergent paths as the conflict continues to unfold.