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Fujairah attack affects UAE, Western markets: Academic

Friday, 17 May 2019 7:53 AM [ Last Update: Friday, 17 May 2019 9:46 AM ]

A picture taken on May 13, 2019 off the coast of the emirate of Fujairah shows Norwegian oil tanker Andrea Victory, one of the four tankers damaged in alleged "sabotage attacks" in the Gulf of Oman the previous day. (Photo by AFP)

A mysterious attack near the UAE port of Fujairah on Sunday has caused a drop in Persian Gulf markets, an analyst says, adding it will also affect Western stocks.

The Persian Gulf stock markets suffered their biggest single-day decline in years on Monday, following alleged sabotage against commercial vessels off the emirate.

PressTV-Persian Gulf Arab markets in for storm after attack

Rising geopolitical tensions highlighted by alleged sabotage against commercial vessels off the emirate of Fujairah have darkened the mood in the Persian Gulf markets.

Lawrence Davidson, lecturer at the West Chester University, told Press TV on Friday that “the drop in market was natural response to concerns that the UAE can’t provide the security either for ships in their ports or for their shipping lanes.”

According to the academic, “It (the drop) will spread beyond the UAE markets and start to impact Western markets as well.”

Davidson said given that European markets are dependent on resources coming through those waters, “we can see more fluctuations”.

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