Most Gulf bourses gain on rising oil prices

Most stock markets in the Gulf closed higher on Tuesday helped by climbing oil prices, while investors assessed the possible impact on the dollar and interest rates after the U.S. administration threatened Federal Reserve Chair Jerome Powell with a criminal indictment.

Oil prices - a catalyst for the Gulf’s financial markets - extended gains as heightened concerns surrounding major producer Iran and potential supply disruptions overshadowed the prospect of increased crude supply from Venezuela.

Saudi Arabia’s benchmark index advanced 1.4%, with Al Rajhi Bank rising 1.9% and Saudi Arabian Mining Company jumping 4.9%.

Elsewhere, oil giant Saudi Aramco climbed 2.7%.

Dubai’s main share index gained 0.8%, with top lender Emirates NBD rising 1.7% and sharia-compliant lender Dubai Islamic Bank was up 1.2%.

In Abu Dhabi, the index added 0.3%.

In the U.S., the Trump administration appears to be on the offensive again against the Federal Reserve, reviving concerns about the central bank’s independence and contributing to greater uncertainty over the economic outlook.

Gulf markets often track shifts in U.S. rate expectations, as most regional currencies are pegged to the dollar.

Further fuelling geopolitical worries, U.S. President Donald Trump said Monday that any country doing business with Iran will be hit with a 25% U.S. tariff, as Washington considers how to respond to Iran’s crackdown on major anti-government protests.

The Qatari index concluded 0.6% higher, with Qatar Islamic Bank putting up 1.8%.

Post trading hours, the Gulf’s biggest lender by assets Qatar National Bank , which ended 1% higher, reported an annual net profit of 17 billion riyals ($4.66 billion).

Outside the Gulf, Egypt’s blue-chip index rose 0.7%, with Commercial International Bank leaping 4.5%.