Middle Eastern stock markets plunged Sunday as escalating US-Iran tensions rattled regional investors. Saudi Arabia's Tadawul All Share Index dropped 2.2%, its worst daily loss since April, while Egypt's main index fell 2.5%, extending its slump to over 8% since mid-February. The selloff was partly offset in Saudi Arabia by Aramco's 3.4% gain, as oil prices surged on war fears.

Egypt's financial markets have been particularly hard hit, with the Egyptian pound weakening to 48.8 per dollar, ranking among the world's five worst-performing currencies last week. The country faces multiple pressures: disrupted Suez Canal traffic since the Israel-Hamas war, Israel's cutoff of natural gas supplies, and now potential further shipping delays. Cairo is scrambling to secure liquefied natural gas shipments ahead of summer demand peaks.

CMA CGM SA, the world's third-largest container line, suspended Suez Canal transits Sunday, compounding the region's economic woes. The timing is especially painful for Egypt, which secured a $57 billion global bailout in early 2024 to weather the Gaza war's economic fallout. With the canal's revival now at risk and energy supplies disrupted, the Middle East faces a fresh wave of market volatility that could test the region's economic resilience.