(Bloomberg) — Saudi Arabian equities fell the most in almost nine months as investors considered the possible fallout of geopolitical tensions in Yemen, Iran and Venezuela.

The Tadawul All Share Index dropped 1.8% on Sunday, the most since US President Donald Trump’s tariffs roiled global markets in April, with all industry groups in the red. The benchmark also closed at its lowest since Oct. 2023, a level it has hovered around for much of the past month.

Stocks in Kuwait, Qatar, Oman and Bahrain ticked slightly higher.

The moves came as the kingdom called on Yemen’s southern factions to enter into talks in Riyadh as clashes continued between Saudi-backed forces and separatist rivals backed by the United Arab Emirates. Meanwhile, Iran’s Supreme Leader Ayatollah Ali Khamenei pushed back against deadly protests he blamed external forces for inciting.

“The current weakness in the Saudi market reflects the regional geopolitical issues, even though there’s no indication of confrontation or escalation at this time, especially related to Yemen,” said Junaid Ansari, head of research and strategy at Kamco Investment Co. “The situation in Iran is also affecting sentiment and adding to the geopolitical risk premium for the region.”

Any impact on stocks from potential oil market disruptions following the ouster of Venezuela’s President Nicolás Maduro would only be felt from Monday, when crude trading resumes after the weekend, Ansari said.

Saudi Arabian equities are coming off their worst annual performance since 2015 amid a confluence of factors including subdued oil prices that restrain public spending and company earnings.

The outlook for 2026 performance is mixed, with some analysts pointing to upside from potential changes in foreign ownership limits and others saying the market generally lacks momentum.

More stories like this are available on bloomberg.com