It comes after Saturday, one of the heaviest days of Hezbollah fire toward northern Israel since the April ceasefire, ​prompting school closures and restrictions.

The operation, the military said, was focused ​on establishing control of the Beaufort Ridge and the ⁠Wadi al-Saluki area, while degrading the Hezbollah and its ​infrastructure on the ridge established under Iranian direction.

One Israeli soldier was ​killed, the military said.

There were no immediate comments from Lebanon or from Hezbollah.

The capture of the medieval castle and ridge deepen Israel’s footprint in Lebanon ​as the Israel-Hezbollah military front remains active even as a parallel ceasefire ​holds in the wider Iran war.

Hezbollah entered the US-Israeli war against Iran by ‌firing ⁠rockets and drones into Israel on March 2, days after the Iran conflict began. Israel then began to attempt driving the Iran-backed militia away from its northern border.

The advance into Beaufort Castle ​has granted Israeli ​troops an overlook ⁠point over much of southern Lebanon and northern Israel, from which attacks have been launched towards ​Israeli residential areas.

US ready to restart strikes on Iran if no deal, says Pentagon chief

Hezbollah “carried out numerous attacks,” from the ​Ridge, the ⁠military said, adding that its troops were operating against launch infrastructure in the area, from which “hundreds of projectiles were launched toward Israeli ⁠civilians ​and IDF soldiers.”

Israeli troops were also operating ​near Nabatieh, a major Hezbollah stronghold in southern Lebanon, the military said.

U.S. and Pakistani leaders signaled that a long-awaited framework agreement to end months of fighting between the United States and Iran could be signed on Sunday, with Qatari negotiators flying to Tehran to help finalize the deal.

However, Iran cast doubt on the timing, saying no final decision had been made as political, legal and technical reviews continued.

Saudi Arabia’s benchmark index rose 0.6%, with Saudi Arabian Mining Company advancing 5.2%, though oil major Saudi Aramco declined 1.1%.

On Friday, Brent futures settled at $87.33 a barrel, down $3.05, or 3.37%.

Elsewhere, Kingdom Holding gave up early gains to close 6.4% lower.

Saudi billionaire Prince Alwaleed bin Talal’s investment firm said it held 42.4 million Class A common shares in SpaceX, valued at 16.76 billion riyals ($4.47 billion), as of its March 31 financial statements.

In Qatar, the index closed 1.9% higher, led by a 3.8% rise in the Gulf’s biggest lender Qatar National Bank .

Outside the Gulf, Egypt’s blue-chip index climbed 2.3%, as most of its constituents were in positive territory.

A memorandum between the U.S. and Iran to halt the war could be signed as soon as Sunday, a Western source told Reuters on Friday, with Geneva emerging as the most likely venue.

Dubai’s main index recorded its best performance in over two months, rising 3.8% in broad-based gains.

Blue-chip developer Emaar Properties climbed 8.3%, while top lender Emirates NBD Bank closed with an 8% rise.

Emaarannounced plans on Thursday for a nearly $55 billion urban district in Dubai, betting that the emirate’s property market can absorb the shock of regional conflict and sustain the foreign demand that powered record transactions in 2025.

UAE equities rallied strongly in response, with investors repositioning towards a normalisation scenario after weeks of repeated cycles of escalation and de-escalation that fuelled volatility, said Hani Abuagla, senior market analyst at XTB MENA.

“The energy sector could also see an improved outlook as the reopening of the Strait of Hormuz would restore export flows and normalise operating conditions”, he added.

Abu Dhabi’s benchmark index advanced 2.7%, buoyed by a 6.9% increase in the UAE’s biggest lender First Abu Dhabi Bank and a 7.5% hike in real estate giant Aldar Properties.

Abu Dhabi Ports Company surged 8% after its subsidiary Black Caspian sweetened a Mandatory Tender Offer (MTO) to acquire a majority stake in Egypt-listed Alexandria Container and Cargo Handling, raising the offer price to EGP 27.47 per share ($0.5290).

Oil prices - a key catalyst for the Gulf’s financial market - slipped 3.4% to $87.29 a barrel by 1144 GMT.

On a weekly basis, Dubai’s index advanced 3.2% and Abu Dhabi’s added 2%, according to data compiled by LSEG.

The U.S. and Iran traded airstrikes for a second straight day, with the latest escalation having been triggered earlier this week by the downing of a U.S. Apache helicopter near the Strait of Hormuz, which set off reciprocal strikes across Iran and against U.S. bases in the region.

Tehran closed the Strait of Hormuz after the U.S. strikes.

Dubai’s main share index declined 0.4%, with blue-chip developer Emaar Properties losing 2.4%.

In Abu Dhabi, the index eased 0.3%.

The Qatari index was down 0.3%, weighed down by a 1.5% slide in the Gulf’s biggest lender Qatar National Bank .

Geopolitical tensions continue to weigh on sentiment, but indications that diplomatic talks remain active have helped cushion the impact despite lingering escalation risks, said Joseph Dahrieh, managing director at Tickmill.

Saudi Arabia’s benchmark index reversed early losses to finish 0.3% higher, helped by a 0.4% gain in oil major Saudi Aramco.

Meanwhile, Brent futures fell $1.10, or 1.2%, to $92 a barrel by 1206 GMT, as traders assessed the actual impact of the renewed hostilities on supply.

Outside the Gulf, Egypt’s blue-chip index retreated 0.9%.

Iran’s Revolutionary Guards said they attacked a U.S. base in Jordan and 21 other Gulf targets in retaliation for American strikes near the Strait of Hormuz, Iranian media reported.

The U.S. military said on X that it struck Iranian air defense systems, ground control stations and surveillance radar sites near the strait after President Donald Trump said Iran had downed a U.S. Apache helicopter on Tuesday.

The clashes mark one of the biggest exchanges of hostilities since the two countries agreed to a ceasefire in April, deepening doubts about prospects for a deal to end the war which began on February 28.

Saudi Arabia’s benchmark index fell 0.9%, pressured by a 2.3% fall in the country’s biggest lender by assets Saudi National Bank and a 0.4% decrease in oil major Saudi Aramco.

Meanwhile, Brent futures were up $1.74, or 1.9%, at $93.19 a barrel by 1127 GMT.

Dubai’s main share index lost 0.5%, with top lender Emirates NBD falling 1.3% and blue-chip developer Emaar Properties losing 1.4%.

In Abu Dhabi, the index was up 0.2%.

GCC stock markets have come under pressure as recent military incidents make investors cautious, though hopes that tensions will remain contained and diplomacy can advance may limit the broader impact on sentiment, said Milad Azar, market analyst at XTB MENA.

The Qatari index reversed early losses to close 0.1% higher, helped by a 0.8% rise in the Gulf’s biggest lender Qatar National Bank .

Outside the Gulf, Egypt’s blue-chip index retreated 2.1%.

Apart from the annual Riyadh event, the initiative organizes economic gatherings throughout the world to try to attract foreign investment.

The leadership change, shown on the institute’s website, precedes a conference the institute is holding in Rome later this month and follows its Miami event in March, which was attended by U.S. President Donald Trump.

The princess, who trained as a doctor, served as vice president of External Relations and Advancement at Alfaisal University in Riyad, and has represented Saudi Arabia at major international forums, including the G20, and the fourth Eurasian Women

Saudi PIF assets reach $910bn in 2025, below Vision 2030 target

Richard Attias, the institute’s founder and longtime chief executive, is no longer CEO, but retains the title of chairman to the executive committee, the website shows.

Established in 2019 with Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, as its founding partner, the Institute grew out of the Future Investment Initiative Institute annual conference, which was first convened in Riyadh in 2017.

The offering had been covered multiple times at the top of its price range of 12.5 riyals ($3.33) per share last week. However, the company opted to withdraw after consultations with its advisers, according to a bourse filing by Al Rajhi Capital.

MGC “remains committed to its expansion and strategic plans”, will explore various expansion options, and will reconsider the IPO in the future, the filing reads.

Saudi PIF assets reach $910bn in 2025, below Vision 2030 target

Founded in 1977, MGC specialises in large-scale water infrastructure, transport and selective urban development projects. The company reported a backlog of 10.6 billion riyals ($2.82 billion) as of the end of March.

Shareholders had planned to offer 240 million existing ordinary shares to investors, representing a 30% stake, and had appointed Al Rajhi Capital and Morgan Stanley as joint financial advisors for the offering.

The listing was set to rank among the largest in the region this year, at a time when Middle East equity capital markets have slowed after a post-pandemic rush of offerings driven by economic diversification programmes.

Proceeds from equity and equity-related issuance in the Middle East and North Africa totalled $427.9 million during the first quarter of this year, down 91% from the same period a year earlier and the slowest annual start in the region since 2011, according to LSEG data.

Saudi PIF to unveil new 2026–2030 strategy this week, sources say

The report also showed real non-oil GDP reached $892 billion, missing the $904 billion target, and foreign direct investment represented 2.8% of GDP, compared with a 3.4% goal.

Explosions were reported in Tehran, Tabriz and Isfahan early on Monday, according to local media, clouding hopes for a near-term end to the broader conflict.

Still, after Iran fired a salvo of missiles at Israeli targets on Sunday in retaliation for an attack near Beirut, U.S. President Donald Trump said a deal to end the war remained within reach. He also reportedly urged Israeli Prime Minister Benjamin Netanyahu to avoid further strikes.

Dubai’s main share index dropped 1.3%, hit by a 1.2% slide in blue-chip developer Emaar Properties and a 1.6% decline in toll operator Salik.

Iran has long maintained that any agreement with Washington would depend on a ceasefire in Lebanon, where Israel launched an invasion in March against Iran-backed Hezbollah fighters after cross-border rocket and drone attacks carried out in support of Tehran.

However, Israel struck the Beirut area again earlier on Sunday, marking its first attack there since the United States unveiled a truce proposal for Lebanon last week.

In Abu Dhabi, the index retreated 0.9%, with conglomerate International Holding  losing 0.6% and the country’s biggest lender First Abu Dhabi Bank  falling 1.3%.

The Qatari index was down 0.9%, with the Gulf’s biggest lender Qatar National Bank  dropping 1.1%.

Saudi Arabia’s benchmark index edged 0.1% lower, with Al Rajhi Bank  shedding 0.5%.

On the other hand, oil major Saudi Aramco gained 0.7% on the back of the latest oil price rise. Benchmark Brent crude futures rose $4.42 or 4.47% to $97.15 a barrel as of 0609 GMT.

The July OSP for flagship Arab Light crude has been set at a premium of $9.50 a barrel above the average Dubai and Oman quotes, a pricing document reviewed by Reuters showed on Monday, $6 a barrel lower than the OSP for June.

July OSPs for other Saudi grades to Asia also fell by $6 per barrel from the previous month.

The price cut came in line with market expectation following a price decline and tepid trading in the spot market in May.

The cash Dubai price’s premium to swaps averaged $9.59 a barrel last month, down from April’s average of $13.92, Reuters data showed, with spot Oman premiums showing a similar trend.

Saudi oil sales to China to halve next month, Bloomberg News reports

Refiners in China, the world’s No. 1 oil importer, have cut runs and drawn on inventories due to mounting refining losses, which has led to a sharp decline in the country’s imports. They lifted less Saudi crude in May and June.

Still, July OSPs to Asia remain much higher than before the Iran war as the conflict has largely halted energy flows out of the key Strait of Hormuz waterway.

The Hezbollah rejected a new ceasefire in Lebanon on Thursday and Israel said it would not withdraw troops from the country, undermining U.S. President Donald Trump’s efforts to halt fighting there and reach a peace deal with Tehran.

Dubai’s main share index rose 0.9%, supported by gains in industrial and utilities sector stocks.

Toll operator Salik Company jumped 1.6%, while Emirates Central Cooling Systems increased 2.5%.

Abu Dhabi’s benchmark index settled 0.3% up, with the largest utility firm Abu Dhabi National Energy advancing 6.2%.

Alef Education gained 1% after the firm completed full migration of its digital learning ecosystem to Microsoft Azure with Core42’s sovereign cloud capabilities.

Brent crude was down 0.32% at $94.73 a barrel by 1232 GMT.

The kingdom could see a near-term recovery if shipping through the Strait of Hormuz normalises in the coming months, it said.

Growth is expected to come in “at about 2%” in 2026, mission head Azim Sadikov said in the IMF’s latest Article IV mission report following a visit to the kingdom from April 28 to May 13. The figure was markedly below the IMF’s forecast of 3.1% for 2026, published in its April outlook.

A prolonged or intensified conflict could weigh on medium-term growth and investment prospects, the Fund said.

Saudi Arabia’s budget deficit at $33.5 billion in Q1 2026, ministry says

Iranian attacks on Gulf states, in response to U.S.-Israeli strikes that began in late February, damaged major energy facilities and disrupted shipping through the strait, which normally carries about 20% of global oil and liquefied natural gas flows.

But Saudi Arabia, the world’s top oil exporter, has been able to limit the impact of reduced shipments by rerouting exports through its East-West pipeline and Red Sea ports, showing agility and resilience, the Fund said.

It added that strong fundamentals — including low government debt and ample reserves — were providing important buffers.

Higher oil prices are also expected to boost revenues and help narrow the current account and fiscal deficits in 2026.

Saudi finance minister in Pakistan to show ‘economic support’

“The main risk is an escalation of the conflict, which could further impair shipping routes, damage energy infrastructure with associated output losses, and heighten uncertainty and financial sector risks,” Sadikov said.

The Fund said the Saudi banking system was well-positioned to absorb shocks, and commended the central bank, known as SAMA, for taking proactive steps to ensure liquidity and monitor credit conditions. It also said that the Saudi riyal’s peg to the U.S. dollar was helping support financial stability amid the uncertainty.

The U.S. military reported that Iranian missile attacks targeting Bahrain, Kuwait, and other sites were either intercepted or failed, while diplomatic efforts between Washington and Tehran remained at an impasse.

Iran’s Revolutionary Guards said they had targeted the U.S. Fifth Fleet headquarters.

Despite both sides signalling a preliminary deal last week, no agreement has been formally endorsed.

Saudi Arabia’s benchmark index fell 0.1%, hit by a 2.9% slide in Banque Saudi Fransi and a 0.4% drop in oil major Saudi Aramco.

A survey showed the kingdom’s non-oil private sector grew at its fastest pace in three months in May, supported by stronger domestic demand and stabilising supply chains, though business optimism remained subdued amid the conflict in the region.

Gulf stock markets weakened as investors turned cautious, though hopes for a diplomatic breakthrough could limit further losses, said Joseph Dahrieh, managing director at Tickmill.

He added that solid domestic economic conditions may help support confidence.

Dubai’s main share index dropped 0.8%, with blue-chip developer Emaar Properties and sharia-compliant lender Dubai Islamic Bank both retreating 2.4%.

In Abu Dhabi, the index was down 0.4%.

The Qatari index eased 0.1%, with petrochemicals maker Industries Qatar dropping 1.4%.

Outside the Gulf, Egypt’s blue-chip index fell 0.7%.

The U.S. said it struck Iranian military sites over the weekend, and Iran’s Revolutionary Guards said on Monday they had targeted a U.S. base in response, marking the latest exchange amid negotiations to end the three-month-old war.

The fighting, which followed Israel-Lebanon peace talks hosted by Washington on Friday, dampened hopes that the U.S. and Iran could soon announce an extension of their ceasefire.

Saudi Arabia’s benchmark index dropped 0.6%, hit by a 0.8% fall in Al Rajhi Bank and a 0.6% decrease in oil major Saudi Aramco.

The Qatari index retreated 1.1%, as most of its constituents were in negative territory, including Qatar Islamic Bank , which declined 2.8%.

Renewed uncertainty over the Iran war is weighing on sentiment. Daniel Takieddine, co-founder and CEO of Sky Links Capital Group, said markets are likely to remain cautious, with limited risk appetite until there is clearer progress toward a resolution and the Strait of Hormuz reopens.

In Abu Dhabi, the index was down 0.5%, with the country’s biggest lender First Abu Dhabi Bank falling 2.6%, as the lender has exposure to the insolvencies of properties linked to mortgage lender Market Financial Solutions, according to the Financial Times.

The lender did not immediately respond to a Reuters request for comment.

Dubai’s main share index bucked the trend to close 0.3% higher, helped by a 2.8% rise in toll operator Salik .

U.S. President Donald Trump said on Friday he would soon decide on a proposed deal to extend the ceasefire with Iran, though the two countries still appear to differ on significant issues that have been central to the conflict.

Oil prices rose more than 2% in early trading on Monday, stoking concerns around inflation and interest rate hikes.

Outside the Gulf, Egypt’s blue-chip index rose 0.4%.

Hussein al-Ezzi, deputy foreign minister in the Houthis’ administration in Sanaa, said in a post on X that if Sanaa decided to close the Bab al-Mandeb, “all of mankind and jinn would be powerless to reopen it.”

He urged Trump and what he called the “complicit world” to immediately halt policies that obstruct peace and to recognise what he described as the rights of the Yemeni people.

READ MORE: Trump says Iran cannot ‘blackmail us’ with Strait of Hormuz

The Bab al-Mandeb Strait, which connects the Red Sea to the Gulf of Aden, is one of the world’s most critical maritime chokepoints, directing shipping traffic towards the Suez Canal.

At its narrowest point, the strait is around 29 kilometres wide, with ships passing through two main shipping lanes.

It serves as a vital route for global trade, carrying significant volumes of crude oil and fuel from the Gulf to the Mediterranean, as well as cargo heading to Asia, including Russian energy exports.

U.S. President Donald Trump announced on Sunday that Washington and Tehran have “largely negotiated” an agreement to end their three-month war and reopen the critical Strait of Hormuz, which had carried a fifth of global shipments of oil and liquefied natural gas before the conflict. However, the two sides remain at odds on several issues, and have played down hopes of an imminent breakthrough.

Dubai’s main share index advanced 1.1%, with blue-chip developer Emaar Properties rising 2.6% and Parkin Company - which oversees public parking operations in the Emirates - increasing 3.6%.

In Abu Dhabi, the index rose 0.5%, led by a 2.4% gain in ADNOC Gas .

Sentiment across GCC stock markets improved as the region moved closer to a possible diplomatic agreement to ease tensions and reopen the Strait of Hormuz, said Milad Azar, market analyst at XTB MENA.

While investors are likely to keep a close watch on further developments in the talks, regional equities could gain support if risk appetite continues to improve, Azar added.

Bahrain’s and Oman’s main indexes were both up 0.9%, extending gains from the previous session.

The Qatari index declined 1.1%, following a gain of more than 3% in the previous session, hit by a 2.7% slide in petrochemical maker Industries Qatar .

Brent crude futures were down $6.01, or 5.8%, at $97.53 a barrel by 1125 GMT.

Outside the Gulf, Egypt’s blue-chip index retreated 0.4%.

The Saudi market remained closed ahead of the upcoming Eid break.

US President Donald Trump announced that Washington and Tehran have “largely negotiated” an agreement to end their three-month war and reopen the critical Strait of Hormuz, which had carried a fifth of global shipments of oil and liquefied natural gas before the conflict.

However, the two sides remain at odds on several issues, with Trump saying on Sunday he had told his representatives not to rush into any deal with Iran.

Dubai’s main share index advanced 2.4%, with blue-chip developer Emaar Properties rising 3.3% and top lender Emirates NBD increasing 2.8%.

In Abu Dhabi, the index rose 0.9%, led by a 1.5% gain in Aldar Properties.

The Qatari index declined 0.6%, following a gain of more than 3% in the previous session.

Brent crude futures were down $5.09, or 4.9%, to $98.45 a barrel at 0705 GMT.

The countries remain divided on Tehran’s uranium stockpile and controls on the Strait of Hormuz.

Brent crude was up 2.85% at $105.5 a barrel by 1130 GMT.

Dubai’s main market rose 0.6%, led by gains in real estate and industrial sector stocks.

Blue-chip developer Emaar Properties jumped 1.6%, while parking service provider Parkin Company added 1.7%.

Emaar Properties said the group’s head of finance Hesham Heikal has left the company and Pawan Chindalia, currently finance chief at Emaar Development, has been appointed his successor.

Parkin said a new 5% value-added tax on parking services is not expected to impact its financial position.

Stock markets in the UAE remained relatively stable, trading close to levels seen over the past few days, with sentiment likely to stay cautious as investors monitor developments in talks between the U.S. and Iran, said Hani Abuagla, senior market analyst at XTB MENA.

Abu Dhabi’s benchmark index gained 0.2%; real estate giant Aldar Properties rose 3.5% and state-owned energy firm Adnoc Gas advanced 1.2%.

Real estate giant Aldar Properties said it had sold out its Al Ghadeer Gardens development at launch, generating more than 1 billion dirhams ($272.32 million).

For the week, the Dubai and Abu Dhabi indexes recorded losses of 0.3% and 0.2%, respectively, according to data compiled by LSEG.

Oil prices rose 2% after Reuters reported that Iran’s Supreme Leader Ayatollah Mojtaba Khamenei had issued a directive that the country’s near-weapons-grade uranium should not be sent abroad.

Pakistan stepped up diplomatic efforts to accelerate U.S.-Iran peace talks, while Tehran said it was reviewing Washington’s latest responses. U.S. President Donald Trump said he could wait a few days for the “right answers” from Iran, but was also prepared to resume attacks.

Dubai’s benchmark stock index rose 0.6%, recovering from the previous session’s losses, with gains across all sectors. Emaar Properties added 1.1%, while budget carrier Air Arabia advanced 2.4%.

Dubai approved an additional 1.5 billion dirhams ($408.5 million) in economic incentives, bringing total support announced over the past two months to 2.5 billion dirhams, the emirate’s crown prince said on X.

The Abu Dhabi benchmark index gained 0.4%, led by utilities and technology stocks. Abu Dhabi Islamic Bank rose 1.2%, while ADNOC Logistics and ADNOC Gas added 1.1% and 0.6%, respectively.

ADNOC’s chief executive said the state oil giant remained committed to its $150 billion five-year capital expenditure programme to expand operations, support growth and meet global energy demand.

The Qatari benchmark index rose 0.6%, with Estithmar Holding jumping 2.3% after a report that it had tapped Rothschild for a potential IPO of its healthcare unit. QatarEnergy-linked Industries Qatar and Mesaieed Petrochemical gained 0.8% and 1.8%, respectively.

QatarEnergy said on Wednesday it had acquired interests in three offshore exploration blocks in Uruguay from a Shell subsidiary, marking its first entry into the country’s upstream sector.

Saudi Arabia’s benchmark stock index climbed 0.4%, with Saudi National Bank up 2.2%. Kingdom Holding surged 8.3%, its biggest intraday percentage gain in more than a year, after saying the Four Seasons Resort and Residences Red Sea on Shura Island had started welcoming guests.

The Omani benchmark index snapped a nine-session losing streak, surging 5.4% as all constituents advanced. OQ Exploration and Production rose 6.8%, while Bank Nizwa jumped 9.4%.

“Despite the recent declines, the market remains on a strong uptrend and could continue to appeal to investors looking to buy the dip in a resilient economy,” said George Pavel, general manager at Naga.com Middle East.

Outside the Gulf, Egypt’s blue-chip index rose 0.3%, helped by an 8.3% gain in Orascom Development and a 1.5% rise in Fawry for Banking Technology.

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.

Trump said on Monday he had halted the planned attack after Tehran sent a new peace proposal to Washington. He later said there was a “very good chance” the U.S. could reach an agreement with Iran to prevent Tehran from obtaining a nuclear weapon.

Dubai’s benchmark stock index snapped a seven-session losing streak, rising 0.9%, with most constituents in positive territory. Talabat gained 4.2%, while Dubai Islamic Bank, the UAE’s largest Islamic lender by assets, advanced 2.4%.

The Abu Dhabi benchmark index advanced 0.9%, led by consumer discretionary, healthcare and technology stocks. Space42 jumped 6.5% and Alpha Dhabi Holding rose 3.4%.

Abu Dhabi Ports gained 0.9% after the port operator signed an agreement to acquire MBS Logistics for 300 million dirhams ($81.69 million). It also said it would work with Borouge to explore an alternative export hub on the UAE’s east coast.

The Qatari benchmark index added 0.5%, with Estithmar Holding up 3.1% and dairy firm Baladna rising 3.8%.

Saudi Arabia’s benchmark stock index edged up 0.2% with most sectors in the green. Al Rajhi Bank added 0.8% and Dar Al Arkan Real Estate Development gained 1.1%. Saudi developer Dar Al-Arkan launched a $600 million five-year sukuk at 7.375%, with orders exceeding $1.3 billion, IFR reported.

The Omani benchmark index extended losses for an eighth straight session, sliding 3.4%, as investors booked profits after a strong rally earlier this year. The index remains up 27.6% year-to-date, the best performance among Gulf benchmarks. OQ Base Industries fell 9.7% and Sohar International Bank lost 7.4%.

“The market could remain exposed to short-term correction risks after a strong performance as investors take profits”, said Daniel Takieddine, Co-founder and CEO, Sky Links Capital Group.

“While the country benefited from a relative distance from the tensions in the region, improving risk appetite could draw capital toward other markets that saw corrections, as investors could move to buy dips”, he added.

Outside the Gulf, Egypt’s blue-chip index rose 1.5%, snapping six sessions of losses, helped by a 5.3% gain in Talaat Moustafa Group and a 1.5% rise in Commercial International Bank .

Egypt’s central bank is expected to keep overnight interest rates unchanged at its Thursday meeting on concerns that inflation could rise because of the U.S.-Israeli war on Iran, a Reuters poll showed on Monday.

Trump is expected to encourage China ​to convince Iran to make a deal with Washington to end the conflict. But analysts doubt that Xi will be willing to push Tehran hard or end support for its military, ​given Iran’s value to Beijing as ⁠a strategic counterweight to the U.S.

The war, which erupted in late February and has driven energy prices higher, has forced governments to roll out relief measures for consumers as efforts to end the conflict remain stalled.

At the start of the two-day meeting on Thursday, Xi said trade talks with the U.S. were making progress but warned that tensions over Taiwan could push relations onto a dangerous path.

Saudi Arabia’s benchmark index added 0.2%, with Al Rajhi Bank gaining 0.8%.

In Abu Dhabi, the index gained 0.2%, helped by a 0.3% rise in ADNOC Gas.

Dubai’s main share index eased 0.1%, hit by a 1.6% slide in toll operator Salik.

The chairman of the UAE Banks Federation said on Wednesday there were no concerns over rising capital outflows or a dollar shortage amid the Iran war, even as the UAE seeks a currency swap arrangement with the United States.

The Qatari index was up 0.3%, with Qatar Islamic Bank rising 0.4%.

Brent crude futures were up 26 cents, or 0.25%, to $105.89 a barrel by 0250 GMT.

OPEC on Wednesday lowered its 2026 global oil demand growth forecast, joining the International Energy Agency and other forecasters in scaling back expectations as the Iran war weighs on the outlook.

U.S. Treasury Secretary Scott Bessent has said that the two presidents will discuss the Iran war, and urged China to “join us in this international operation” to open the Strait of Hormuz to international shipping.

But while Beijing worked behind the scenes to convince Iran to hold peace talks with the U.S. in Pakistan last month, analysts say it would not act solely at Washington’s behest.

Saudi Arabia’s benchmark index gained 0.2%, with Al Rajhi Bank rising 0.8% and the country’s biggest lender, Saudi National Bank, increasing 0.5%.

In Abu Dhabi, the index added 0.3%, with ADNOC Drilling advancing 1.6% after its CFO told Reuters on Tuesday that the company is prepared to help expand the UAE’s oil production capacity beyond its current target of 5 million barrels per day by 2027, if approved.

The Qatari index edged 0.1% higher.

Meanwhile, Brent crude futures dropped $1.47, or 1.4%, to $106.30 a barrel at 0630 GMT.

Dubai’s main share index declined 0.7%, with blue-chip developer Emaar Properties losing 1%.

U.S. President Donald Trump said a ceasefire was still holding despite a flare-up in tensions that dented hopes for a swift diplomatic resolution to the crisis.

Dubai’s main index fell 0.5%, ending a two-session rebound, with banking shares leading declines.

Emirates NBD Bank dropped 1.4%, while Dubai Islamic Bank slid 2.2%.

Bucking the trend, Emirates Integrated Telecommunications advanced 3.1% after announcing a partnership with Ooredoo Group to land the FIG subsea cable in the UAE.

The project is aimed at supporting rising demand from hyperscalers, cloud providers, AI platforms and data center operators.

UAE equities eased after renewed Strait of Hormuz tensions, but resilient local fundamentals and any regional de-escalation could support a return toward previous highs, said Daniel Takieddine co-founder and CEO, Sky Links Capital Group.

In Abu Dhabi, the benchmark index closed 0.4% lower, pressured by a 1.2% decline in Adnoc Gas and a 1.5% drop in Abu Dhabi Commercial Bank.

Oil prices - a key catalyst for Gulf’s financial market - rose, with Brent crude futures up 0.67% at $100.73 a barrel by 1143 GMT.

Despite the pullback, both indexes ended the week higher. The Dubai index gained 2.4% for the week, while the Abu Dhabi added 0.5%, according to data compiled by LSEG.

U.S. President Donald Trump said the war with Iran could end quickly as Tehran reviewed a U.S. peace proposal that, according to sources, would formally bring the conflict to a close while leaving unresolved Washington’s key demands for Iran to halt its nuclear programme and reopen the Strait of Hormuz.

Saudi Arabia’s benchmark index rose 0.8%, with ACWA Power surged 10%, while Elm Co, also, jumped 10% following a steep rise in first-quarter profit.

Meanwhile, Brent crude futures fell $4.31, or 4.3%, to $96.96 a barrel by 1242 GMT.

Dubai’s main share index gained 0.6%, led by 5.6% surge in toll operator Salik and a 7.2% surge in Emirates Central Cooling Systems after upbeat quarterly earnings.

Meanwhile, the United Arab Emirates said on Wednesday that its ties and its international and defence partnerships were a “purely sovereign matter,” rejecting an earlier statement by Iran that Abu Dhabi’s cooperation with the U.S. threatened Iran’s security and national interests.

In Abu Dhabi, the index finished flat.

The Qatari index added 0.6%, with petrochemical maker Industries Qatar gaining 1.6%.

Egyptian bourse was closed for a public holiday.

U.S. President Donald Trump said he would briefly pause an operation escorting ships through the Strait of Hormuz, a key waterway that carries about a fifth of global oil supplies and has been blockaded by Iran since late February, triggering a global energy crisis.

Dubai’s benchmark stock index rose 1.5%, rebounding from losses in the previous session.

The United Arab Emirates’ defence ministry said on Tuesday its air defences were responding to missile and drone attacks from Iran, although Iran’s joint military command denied its forces had conducted any missile or drone operations against the UAE in recent days.

Among individual stocks, blue-chip developer Emaar roperties gained 1.7%, while Dubai’s largest lender, Emirates NBD , added 1.5%.

The Abu Dhabi benchmark index advanced 0.5%, with most constituents trading higher. Gains were led by utilities, healthcare and technology shares.

Presight AI Holding jumped 5%, while Alpha Dhabi climbed 2.3% after the conglomerate reported an 82% surge in first-quarter net profit.

ADNOC’s four listed units also advanced. ADNOC Logistics rose 2.6%, ADNOC Distribution gained 2%, ADNOC Drilling added 1.5% and ADNOC Gas was up 1.2%.

Abu Dhabi National Oil Company expects to make a final investment decision this year on its unconventional gas project with TotalEnergies (TTEF.PA), with approval for a separate unconventional oil project expected to follow soon, its upstream chief said.

Saudi Arabia’s benchmark stock index rose 0.4%, with most constituents trading in positive territory. Gains were led by information technology, materials and healthcare stocks.

Saudi Arabian Mining Co added 4.5%, while Arabian Mills for Food Products surged 8% after reporting a 32% rise in first-quarter net profit. Retal Urban Development slipped 3.5% after the developer posted a 13% drop in first-quarter net profit.

Meanwhile, Saudi Arabia reported a first-quarter fiscal deficit of 125.7 billion riyals ($33.5 billion) as the kingdom increased spending to support the economy amid disruption caused by the Iran war.

The Qatari benchmark index edged up 0.3%, as most stocks traded higher. Industries Qatar gained 0.7%, while Qatar Fuel Co added 0.6%.

Total government spending reached 386.7 billion riyals in the quarter, outpacing revenues of 261.0 billion riyals, according to the finance ministry.

Oil revenues declined 3% to 144.7 billion riyals from 149.8 billion riyals in Q1 2025.

Saudi Arabia deficit widens to $25.28 billion in Q4 2025, finance ministry says

Non-oil revenues rose 2% to 116.3 billion riyals from 113.8 billion riyals a year earlier.

Military spending increased 26% to 64.7 billion riyals compared with 51.4 billion riyals in Q1 2025.

Washington is pushing to reopen the Strait of Hormuz to ease the severe strain on global energy supplies after Iran largely shut the passage following the start of the war with the U.S. and Israel on February 28.

After reported Iranian drone and missile attacks across the UAE, including one that sparked a fire at the key oil port of Fujairah, the UAE said the strikes marked a serious escalation and that it reserved the right to respond.

Fujairah has been critical to UAE oil exports during the Iran war as it sits at the end of the Abu Dhabi Crude Oil Pipeline, which carries crude from inland fields to the Gulf of Oman, bypassing the Strait of Hormuz.

Dubai’s main share index dropped 0.9%, dragged by a 3.6% slide in budget airline Air Arabia and a 5% plunge in Mashreqbank .

In Abu Dhabi, the benchmark index declined 0.3%, with Aldar Properties losing 0.3%.

UAE authorities on Monday issued mobile phone alerts in Dubai and Abu Dhabi warning of the possibility of missile attacks.

Meanwhile, the UAE’s non-oil private sector expanded at its slowest pace since February 2021 in April as the Iran war hammered shipping and tourism, hitting sales and exports alike, a survey showed on Tuesday.

Saudi Arabia’s benchmark index lost 0.8%, with Al Rajhi Bank falling 1% and Saudi Arabian Mining Company declining 1.4%.

The GCC remained under pressure as investors stayed cautious following the rise in regional tensions a day earlier. Markets are likely to remain sensitive to geopolitical headlines and developments on the ground, said Milad Azar, market analyst at XTB MENA.

“Concerns about the sustainability of the current ceasefire and the resurgence of incidents could keep markets on edge.” said Azar.

Brent crude futures eased $1.38, or 1.2%, to $113.06 a barrel at 1108 GMT after settling up 5.8% on Monday.

The Qatari index  was down 0.6%, with Qatar Islamic Bank falling 1.1%.

Outside the Gulf Egypt’s blue-chip index advanced 1.1%, with Commercial International Bank gaining 2.3%.

Egypt has raised natural gas prices for several energy-intensive industries starting May, according to a prime ministerial decree published on Sunday.

U.S. President Donald Trump will be briefed on Thursday on plans for strikes on Iran, U.S.-based digital news company Axios reported late on Wednesday.

The Abu Dhabi benchmark index dropped 1.2%, snapping a four-session winning streak, with nearly all sectors in negative territory. Losses were led by real estate and utilities stocks.

Aldar Properties fell 4.5%, while NMDC Group declined 3.5% after reporting a 50% drop in first-quarter net profit, as higher logistics, insurance and fuel costs, along with project delays linked to regional geopolitical tensions, weighed on earnings.

Broad-based losses in Dubai

Dubai’s benchmark stock index slid 1.6%, dragged down by broad-based losses. Blue-chip developer Emaar Properties dropped 4.4%, while toll operator Salik Company fell 2.8%.

“Markets in UAE recorded a correction as geopolitical concerns increased. Over the long term, the country could benefit from its capacity to increase oil production after leaving OPEC if disruptions in the region abate,” said George Pavel, general manager at Naga.com Middle East.

The Qatari benchmark index declined 1.2%, with almost all stocks trading lower.

Qatar National Bank , the region’s largest lender, shed 0.9%, while petrochemicals conglomerate Industries Qatar dropped 1.7% after reporting a decline in first-quarter profit as sales volumes weakened, largely due to lower production and shipping constraints amid continued regional uncertainty.

Saudi Arabia’s benchmark stock index eased 0.5%, pressured by losses in communications, real estate and financial stocks.

Saudi National Bank, the kingdom’s largest lender by assets, fell 1.6%, while Al Majed For Oud slumped 10%, its steepest percentage decline since listing in 2024, after the perfume maker posted a 9% drop in first-quarter net profit.

However, gains in IT, materials and energy stocks limited losses on the Saudi index. Oil giant Saudi Aramco rose 0.7%, while National Shipping Company of Saudi Arabia, or Bahri, added 2.7% after the shipping firm reported a 303% jump in first-quarter net profit.

Outside the Gulf, Egypt’s blue-chip index fell 1.1%, weighed down by a 3.7% drop in Fawry for Banking Technology and a 2.2% decline in Commercial International Bank .

The UAE said on Tuesday that it would exit the oil producers group. As one of OPEC’s largest producers, the UAE’s departure weakens the group’s grip on global oil supply and deepens its rift with Saudi Arabia, OPEC’s de facto leader.

The UAE’s exit from the oil cartel may also allow the Gulf state to raise production once exports resume, since it would no longer be bound by OPEC quotas.

Speculation that the UAE would leave OPEC had persisted for years. With vast reserves and among the world’s lowest production costs, it can remain profitable even during extended periods of low prices.

In Abu Dhabi, the share index rose 0.7%, lifted by a rally in companies tied to oil major Abu Dhabi National Oil Company (ADNOC).

ADNOC Drilling surged 8.1%, ADNOC Gas gained 3.7%, ADNOC Logistics & Services jumped 7.8% and Fertiglobe - the largest producer of nitrogen fertilisers in the Middle East and North Africa - ended 10.3% higher.

Milad Azar, market analyst at XTB MENA, said the UAE’s move raised hopes that higher long-term exports would support the market and the broader economy.

Meanwhile, Americana Restaurants International soared 12.4%, a day after reporting a steep rise in first-quarter profit.

Dubai’s main share index edged 0.1% higher, helped by a 2% rise in toll operator Salik .

Saudi Arabia’s benchmark index gained 0.5%, led by a 2.4% rise in Saudi Telecom Company as the firm reported a rise in quarterly profit.

Oil major Saudi Aramco added 0.4%.

Brent crude futures for June rose $3.33, or 3%, to $114.60 a barrel, on media reports the U.S. will extend its blockade of Iranian ports, likely prolonging supply disruption from the Middle East producing region.

The Qatari index eased 0.1%.

Outside the Gulf, Egypt’s blue-chip index added 0.3%.