Most Gulf markets gain on signs of progress in US-Iran talks

Most Gulf stock markets ended higher on Wednesday after Iran touted progress in nuclear negotiations with the United States.

Iran’s foreign minister said after talks in Geneva on Tuesday that Tehran and Washington had reached an understanding on the main “guiding principles” for resolving their longstanding nuclear dispute, easing fears of a military conflict.

Crude prices - a catalyst for the Gulf’s financial markets - gained more than 1% after falling in the previous session as investors assessed developments in Russia-Ukraine and U.S.–Iran talks.

Saudi Arabia’s benchmark index gained 0.5%, snapping a three-day losing streak, led by a 1.7% rise in the country’s biggest lender by assets Saudi National Bank.

Elsewhere, oil behemoth Saudi Aramco finished 0.6% higher.

GCC stock markets were mostly higher, supported by encouraging signals from the U.S.–Iran meetings. The improved mood offered a break from the recent risk-off sentiment driven by heightened regional geopolitical tensions, said George Pavel general manager at Naga.com Middle East.

Dubai’s main share index advanced 1.2%, buoyed by a 3.4% gain in blue-chip developer Emaar Properties and a 3.9% leap in budget airliner Air Arabia .

Pavel said the Dubai market seems well placed to sustain its upward momentum, backed by sound fundamentals and robust economic forecasts for the year.

In Abu Dhabi, the index climbed 1.2%, outperforming Gulf peers, with Aldar Properties rising 2%, after the developer announced a mid-rise residential project in Dubai as part of its joint venture with Dubai Holdings.

Meanwhile, Iran and Russia will conduct navy drills in the Sea of Oman and the northern Indian Ocean on Thursday, the Iranian semi-official Fars news agency reported, a few days after Revolutionary Guards conducted military drills in the Strait of Hormuz.

The Qatari index added 0.2%, with the Gulf’s biggest lender Qatar National Bank putting on 0.6%.

Outside the Gulf, Egypt’s blue-chip index finished 0.8% higher, .