Most Gulf equities end lower amid cautious response to renewed US-Iran talks

Most Gulf markets ended lower on Tuesday as investors weighed renewed diplomatic efforts to end the conflict between the United States and Iran.

US and Iranian officials held separate talks with mediators on Monday, officials from both countries said, in a renewed push to end the war.

Any further negotiations are expected to centre on an amended version of the seven-day proposal Iran presented last week on the sidelines of the United Nations General Assembly, according to an official briefed on the talks.

Saudi Arabia’s benchmark index declined 1.2%, dragged lower by a 1.4% decline in oil giant Saudi Aramco.

Meanwhile, the kingdom has resumed oil loadings from its Red Sea port of Yanbu after restoring operations on the East-West Pipeline, trade sources and shipping data showed, bolstering prospects for Middle Eastern crude exports.

Regional uncertainty continued to weigh on investor sentiment. Although US-Iran talks are being conducted through mediators, the absence of a clear diplomatic timetable and limited evidence of tangible progress have kept investors cautious, said Joseph Dahrieh, managing director at Tickmill.

At the same time, subdued shipping traffic through the Strait of Hormuz and persistent maritime disruptions continue to heighten market concerns, Dahrieh added.

Qatar’s benchmark retreated 1.1%, with Qatar National Bank , the Gulf’s largest lender, losing 1%.

Sentiment was also clouded by continued disruption to LNG flows. QatarEnergy has extended force majeure notices and will be unable to deliver liquefied natural gas cargoes to Italian utility Edison and certain Asian customers, while the Strait of Hormuz remains closed, Edison and trading sources said on Monday.

Dubai’s main share index fell 0.2%, hit by a 1.6% slide in toll operator Salik Co .

In Abu Dhabi, the index was down 0.3%. Outside the Gulf, Egypt’s blue-chip index lost 0.3%.