DUBAI: Gulf bourses closed mostly higher on Monday as US President Donald Trump’s signal that fresh Iran strikes are unlikely, provided talks continue, lifted sentiment across the region after an eight-month conflict.
Trump’s remarks came despite reports from the US military and Iranian state media that shipping had been attacked in or near the Strait of Hormuz, a vital waterway that carried nearly a fifth of the world’s crude before the war.
Trump had earlier hinted at renewed attacks after last week’s midterm elections, but no large-scale US military operation has followed, and Tehran has warned it would hit US and Israeli targets in response to any such move.
Saudi Arabia’s benchmark index rose 0.9 percent, with Al Rajhi Bank gaining 1.9 percent, while Perfect Presentation For Commercial Services surged 4.3 percent following a rise in quarterly profit.
Meanwhile, Saudi authorities lifted an alert in Riyadh on Monday, a day after a Houthi attack damaged an Aramco office building in the city.
Dubai’s main share index gained 1 percent, with blue-chip developer Emaar Properties advancing 2.4 percent.
In Abu Dhabi, the index was up 1 percent.
Shipping disruption in the Strait of Hormuz remains a drag, but resilient regional economic data is keeping investors buying, said Daniel Takieddine, Co-founder and CEO, Sky Links Capital Group.
Anwar Gargash, a senior Emirati official, warned on Monday that the region may face a long period of instability as a comprehensive political deal between Washington and Tehran looked hard to achieve.
“We should … prepare for a long period of uncertainty in which neither a decisive resolution nor stable regional order can be taken for granted,” Gargash said in an address to a geopolitical conference in Abu Dhabi, the United Arab Emirates capital.
The Qatari index was up 0.9 percent, led by a 1.5 percent rise in the Gulf’s biggest lender, Qatar National Bank.
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