UAE stocks retreat on US-Iran impasse; oil prices jump

Stock markets in the United Arab Emirates declined on Friday, as investors took a cautious stance after talks between the U.S. and Iran ended in Geneva with no breakthroughs that could avert potential U.S. strikes amid a massive military buildup.

The two sides plan to resume negotiations after consultations in their countries’ capitals, with technical-level discussions scheduled to take place next week in Vienna, Omani Foreign Minister Sayyid Badr Albusaidi said in a post on X.

Dubai’s main market plunged 1.8%, its second week of decline, dragged down by a 4.1% decrease in blue-chip developer Emaar Properties, its steepest intraday fall in nearly 10 months.

Top lenders Emirates NBD Bank and Dubai Islamic Bank dropped 5.2% and 2.4% respectively in an index-wide decline.

Separately, Dubai Aerospace Enterprise said on Thursday it will buy aircraft leasing firm Macquarie AirFinance for an enterprise value of about $7 billion, creating a combined fleet of 1,029 planes and one of the world’s biggest lessors.

Abu Dhabi’s benchmark index tumbled 1.3%, led by a 2.4% dip in UAE’s largest lender First Abu Dhabi Bank, while Americana Restaurants International, which operates U.S. fast food brands in the Middle East, slid 5.6%.

Meanwhile, Abu Dhabi on Thursday raised a total of $3 billion from a two-tranche U.S. dollar-denominated bond sale, fixed income news service IFR reported, in its first issuance this year.

However, oil prices - a key contributor to Gulf’s economies - jumped on Friday as uncertainty surrounding U.S. and Iran negotiations pushed prices higher.

Brent crude was up 1.96% to $72.14 a barrel by 1134 GMT.