Gulf markets mixed as US-Iran peace talks fail

Stock markets in the Gulf ended mixed on Monday after Washington announced a maritime blockade on traffic to and from Iranian ports, following weekend talks with Tehran to end the war that failed to reach a deal.

The U.S. move, aimed at pressuring Iran, leaves a fragile ceasefire hanging in the balance. The U.S. Central Command said its forces would begin blocking all maritime traffic entering and exiting Iranian ports from 10 a.m. ET (1400 GMT) on Monday.

Dubai’s main share index reversed earlier losses to close 0.8% higher. The index was dragged down by a 2.5% fall in top lender Emirates NBD and a 1.7% decline in blue-chip developer Emaar Properties .

Budget carriet Air Arabia also fell 3.5%.

In Abu Dhabi, the index closed down 0.5%, with ADNOC Gas falling 1.2%.

GCC equities were mixed as renewed geopolitical tensions weighed on sentiment following the breakdown in diplomatic talks between the U.S. and Iran and Washington’s naval blockade of the Strait of Hormuz, while oil prices rose on supply concerns, said Milad Azar Market analyst at XTB MENA.

UAE equities came under modest pressure amid the evolving backdrop. Although geopolitical risks continue to weigh on sentiment, the recent easing in tensions may support near-term consolidation, added Azar.

The Qatari index concluded 0.1% lower in choppy trade, hit by a 0.8% fall in Qatar Islamic Bank.

Maritime transport company Qatar Gas Transport was down 0.6%.

The benchmark index in Saudi Arabia - which has been shielded from much of the regional disruption due to its ability to reroute oil exports - advanced 1%, led by a 2.7% rise in the country’s biggest lender Saudi National Bank.

Elsewhere, oil behemoth Saudi Aramco climbed 1.6%.

Saudi equities maintained a constructive tone. While geopolitical risks remained in focus, relatively softer tensions supported investor confidence, and higher crude prices continued to underpin the market’s ability to absorb near-term volatility, said Azar.

Brent crude futures were up 7.2% at $102 a barrel, having gained more than 40% since the war began, disrupting supplies through the vital Strait of Hormuz.

Saudi Arabia said on Sunday it had restored the East-West pipeline to its full pumping capacity of about 7 million barrels per day, days after assessing damage to energy infrastructure from attacks. A Reuters analysis showed the kingdom also benefited from firmer oil prices, with estimated March oil revenue rising year on year.

Egyptian bourse was closed for a public holiday.