Gulf bourses fall as US-Iran uncertainty keeps investors cautious

BENGALURU: Most Gulf stock markets ended lower on Wednesday as investors stayed cautious over the outcome of U.S.-Iran peace talks and volatile oil prices.

Iran threatened on Wednesday to widen the war beyond the Middle East if the United States attacks again, after U.S. President Donald Trump said he had come within an hour of ordering fresh strikes before delaying the decision to allow more time for diplomacy, while Vice President JD Vance also pointed to progress in talks.

The shifting U.S. stance has kept oil prices volatile. Brent crude futures fell about 3% to $108.31 a barrel by 1059 GMT.

Dubai’s benchmark stock index fell 0.6%, with losses across most sectors. Blue-chip developer Emaar Properties shed 1.1%, while low-cost carrier Air Arabia slipped 1.3%.

The Abu Dhabi benchmark index dropped 0.5%, weighed down by technology, healthcare and financial stocks. First Abu Dhabi Bank , the UAE’s largest lender, lost 2.6%, while Aldar Properties fell 0.7%.

“While local economic resilience could help limit downside risk, a clear move toward a resolution in the region could drive a strong rebound, particularly for the real estate sector,” said Joseph Dahrieh, managing director at Tickmill.

The Omani benchmark index fell for a ninth straight session, sliding 3.3%, with nearly all stocks in negative territory. OQ Base Industries dropped 9.7% and Asyad Shipping Company lost 7.1%.

The index extended recent losses amid regional geopolitical uncertainty, weaker global sentiment and profit-taking after a strong rally, Dahrieh added.

Qatar’s benchmark index eased 0.6%, with most stocks trading lower. Qatar Islamic Bank fell 1.4%, while QatarEnergy units, Industries Qatar and Mesaieed Petrochemical , lost 0.5% and 1.5%, respectively.

Qatar’s foreign ministry spokesperson said on Tuesday there were no special arrangements in place for energy exports, but that the closure of the Strait of Hormuz had added complexity to regional supply chains.

Saudi Arabia’s benchmark index was little changed. Banque Saudi Fransi fell 3.8%, while Makkah Construction gained 5.3%.

Dar Al-Balad Business Solutions jumped 28.2% to 12.50 riyals on debut. The IT solutions provider’s IPO was priced at the top of its range at 9.75 riyals per share, raising about 205 million riyals.

Outside the Gulf, Egypt’s blue-chip index slipped 1.6%, with all stocks in the red. Commercial International Bank fell 1.3%, and EFG Holding dropped 2.7% after reporting a 14% decline in first-quarter net profit attributable to shareholders.