ISTANBUL

Dubai’s main stock index slipped into bear-market territory on Monday after falling more than 20% from its February peak as escalating regional tensions triggered broad selling across banking, real estate and travel-linked shares.

The Dubai Financial Market General Index reached a recent high of 6,785.48 on Feb. 10 and later dropped to 5,391.98 on March 13, according to Dubai Financial Market data.

That represents a decline of about 20.5%, meeting the widely used definition of a bear market.

Selling pressure persisted Monday, with Reuters reporting that Dubai’s benchmark fell another 2%, led by a 3% drop in Emaar Properties and a 1.4% decline in Emirates NBD as investors reacted to rising geopolitical uncertainty in the Gulf.

The index has fallen more than 18% since the conflict began.

The downturn has been concentrated in sectors most exposed to domestic economic activity and investor sentiment, particularly banking and real estate, while aviation and tourism-linked stocks have also come under pressure as security concerns cloud the outlook for travel, trade and business activity.

Dubai’s market had already posted sharp losses earlier this month, including a 4.7% drop when trading resumed after a two-day halt and a further 3.2% decline later that week, with Emaar, Emirates NBD and Air Arabia among the main contributors to the fall.

Further weakness followed last week as the conflict deepened.

On March 13, Dubai’s index fell 1.7%, marking its second-largest weekly decline in six years, again led by losses in banking and property shares.

-Iran conflict

Tensions in the Middle East have escalated since the US and Israel launched a large-scale attack on Iran on Feb. 28, killing more than 1,300 people, including then-Supreme Leader Ali Khamenei, more than 150 schoolgirls and senior military officials.

Iran has retaliated with drone and missile strikes targeting Israel, Jordan, Iraq and Gulf countries hosting US military assets.