Gulf markets plunge on US-Iran tensions; Aramco at lowest since IPO

Kuwaiti and Saudi shares led Gulf stocks sharply lower in late afternoon trade on Sunday in the wake of a US drone strike in Baghdad that killed Iran's top military commander Qassem Soleimani.

"A US-Iran war could shave 0.5 percentage points or more off global GDP, mainly due to a collapse in Iran’s economy, but also due to the impact from a surge in oil prices," Jason Tuvey, senior emerging markets economist at Capital Economics, said in a note last week, according to Reuters.