Gulf markets mixed as Iran reports progress in peace talks

Gulf markets ended mixed on Monday after Iranian negotiators reported progress in peace talks with the United States, soothing fears that the process was faltering.

The first round of talks between senior U.S. and Iranian officials in Switzerland concluded on Monday, mediators said, after a fraught opening marked by Tehran’s renewed closure of the Strait of Hormuz and U.S. President Donald Trump’s repeated threats to resume attacks on Iran.

In a joint statement released by Qatar’s foreign ministry, mediators Qatar and Pakistan said Washington and Tehran had agreed on a 60-day roadmap toward a final deal, with technical talks set to continue through the week.

Dubai’s main share index added 0.3%, helped by a 1.9% rise in top lender Emirates NBD .

In Abu Dhabi, the index gained 0.2%.

Gradual improvement in the Middle East geopolitical backdrop could continue to support investor sentiment. Progress in U.S.-Iran diplomatic talks may help ease near-term concerns, though caution could persist as investors await the next steps after repeated cycles of escalation and de-escalation, said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group.

While lower risks around the Strait of Hormuz are broadly positive for regional stability and local economies, softer crude prices could weigh on energy-heavy markets, he added.

The Qatari index fell 0.3%, hit by a 1.1% slide in the region’s biggest lender Qatar National Bank.

Meanwhile, four Qatar-controlled LNG tankers were heading into the Strait of Hormuz on Monday, even as traffic fell after Iran said it had again closed the waterway over the weekend.

Authorities said 54 people were injured and 18 remain missing after an explosion on Sunday at Ras Laffan, Qatar’s main liquefied natural gas processing site.

Saudi Arabia’s benchmark index closed flat.

Brent crude was down $1.46, or 1.8%, at $79.11 a barrel by 1127 GMT.

Outside the Gulf, Egypt’s blue-chip index fell 0.2%.