Gulf stocks mixed amid confusion over US-Iran talks

DUBAI: Gulf markets ended mixed on Tuesday, with Qatar extending losses while other bourses steadied as investors parsed conflicting signals on potential US-Iran talks.

Sentiment was volatile after US President Donald Trump delayed strikes on Iran’s energy infrastructure and talked of “productive” discussions to end the U.S-Israeli war with Iran, but Tehran dismissed that comment as “fake news”.

The US will continue strikes on Iran, with the pause applying only to energy sites, Semafor reported, citing a US official. Israel was not part of Washington’s contacts with Tehran, the report added.

The conflict has driven sharp rises in energy prices, disrupted air travel and hit shipping through the vital Strait of Hormuz route for oil and LNG exports.

Dubai’s main index rose as much as 4 percent before closing 1.6 percent higher, lifted by gains in heavyweight real estate and banking stocks. Emirates NBD Bank jumped 7.3 percent, its second-biggest intraday gain in more than a year, while Emaar Properties added 4 percent.

In Abu Dhabi, the index gained 1.1 percent. Abu Dhabi National Energy rose 3 percent and Two Point Zero Group climbed 5.1 percent.

The Dubai index trimmed year-to-date losses to 9.5 percent, while Abu Dhabi is down 4.7 percent, LSEG data shows.

Any signs of easing tensions could lift equities further given solid domestic fundamentals in the UAE, said George Pavel, general manager at Naga.com Middle East.

Saudi Arabia’s benchmark erased earlier declines to close 0.03 percent higher, supported by banking stocks. Al Rajhi Bank gained 3.3 percent and Saudi National Bank rose 3.1 percent. Saudi Aramco fell 1.5 percent and Saudi Arabian Mining dropped 6.8 percent.

Crude oil exports from Saudi Arabia’s western Yanbu port rose to nearly 4 million barrels per day last week, up sharply from levels before the Iran war, shipping data shows.

Qatar’s index slid 1.4 percent, extending losses from its previous session on March 18, led by financial and energy stocks. Qatar National Bank fell 3.5 percent and Qatar Gas Transport (Nakilat) lost 5.4 percent. Doha is not mediating between Washington and Tehran but supports all diplomatic channels to end the war, its foreign ministry said.

Oman’s index gained 1.9 percent and Bahrain’s edged 0.2 percent higher. Boursa Kuwait slipped 0.3 percent.

Outside the Gulf, Egypt’s blue-chip index dropped 1.4 percent, with Commercial International Bank COMI.CA down 4.3 percent.

With the war ongoing and shipments of about one-fifth of global oil and LNG through the Strait of Hormuz still restricted, oil prices resumed their climb. Brent crude was up 3 percent at USD102.97 a barrel by 1225 GMT.