The U.S. killing of Iran’s most senior military commander reverberated through Middle Eastern markets, sending stocks into retreat and setting the tone for what’s likely to be a volatile week.

All the region’s major equity gauges fell on Sunday. Kuwait’s dropped more than 4%, trimming a rally that made it the best market in the region last year. Saudi Aramco slumped as the country’s Tadawul All Share Index lost as much 2.5%. Egypt’s EGX30 gauge fell 4.4%, the most since September, and stocks in the United Arab Emirates,

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