Egypt Leads Mideast Stock Losses Amid Strikes; Israel Rebounds

Most Middle Eastern markets dropped on Sunday as investors signaled growing concerns of a wider conflict amid tit-for-tat attacks by Israel and Iran.

Egypt’s main stock index was the worst performer among markets that opened for the first time since the attack began on Friday, posting the biggest losses in more than a year on concerns that a halt in Israeli gas production will lead to fuel shortages in the import-dependent country. Its currency weakened past the 50-per-dollar mark at local bank trades.

Israel’s equity benchmark ended higher, erasing intraday losses, as defense supplier Elbit Systems Ltd. rallied. In Saudi ...