Major Gulf markets climb as traders gauge prospects for US-Iran resolution

Major stock markets in the Gulf rose on Tuesday after the US said it was still engaging with Tehran in an effort to secure a deal, even as it blocked shipping traffic to and from Iran’s ports following the collapse of peace talks over the weekend.

Sources told Reuters that both sides have maintained an openness to dialogue, while a US official said there had been forward progress toward an agreement.

US President Donald Trump said Monday that Iran had “called this morning” and wanted “to work a deal,” although Reuters could not immediately verify that claim.

Trump said Washington would block Iranian vessels, along with any ships that paid such tolls, and warned that any Iranian “fast-attack” boats approaching the blockade would be destroyed. Negotiating teams from the US and Iran could return to Islamabad this week, four sources said on Tuesday.

Dubai’s main share index advanced 1.5%, underpinned by a nearly 3% rise in blue-chip developer Emaar Properties and a 1.7% increase in top lender Emirates NBD.

In Abu Dhabi, the index gained 0.7%, with Aldar Properties up 2.1%.

Saudi Arabia’s benchmark index edged 0.2% higher, supported by a 0.5% rise in AL Rajhi Bank.

In contrast, oil major Saudi Aramco fell 0.5%.

Brent futures declined 96 cents, or 1.08%, to $98.33, as supply concerns eased on optimism surrounding US-Iran negotiations.

The Qatari index was up 0.6%, buoyed by a 0.7% gain in the Gulf’s biggest lender Qatar National Bank.