Market Impact - Saudi Arabia's Tadawul All Share Index fell by 2.2%, marking the largest daily loss since April and reversing its year-to-date gains, although Aramco's 3.4% increase mitigated the decline due to anticipated crude price rises [2] - Egypt's main index dropped by 2.5%, extending its decline since mid-February to over 8% as tensions regarding a potential US-Iran war escalated [2] Regional Stock Performance - Omani and Bahraini equities also experienced declines, while Kuwait's stock exchange halted trading as a precautionary measure [3] - Israel's market was closed on Sunday due to a recent shift to a Monday-Friday trading schedule [3] Currency and Economic Vulnerability - The Egyptian pound weakened to approximately 48.8 per dollar, its lowest level since mid-2025, making it one of the world's five worst-performing currencies last week [4] - Egypt's financial assets have been significantly impacted by rising tensions, particularly due to shippers avoiding the Suez Canal, a critical source of foreign revenue [4] Natural Gas Supply Issues - Israel's decision to cut off natural gas supplies to Egypt, following military actions against Iran, has further strained Egypt's energy situation [5] - Egypt, which previously received about 1 billion cubic feet of gas per day from Israel, is now seeking to expedite liquefied natural gas shipments to meet summer demand [5] Broader Economic Context - Egypt's vulnerability to regional turmoil has been highlighted, despite its geographical distance from Iran, leading to a $57 billion global bailout secured in early 2024 amid escalating pressures from the Gaza conflict [6] - The revival of Suez Canal transits, which had shown signs of improvement after an October ceasefire, is now at risk, with major shipping lines like France's CMA CGM SA suspending passage through the canal [6]