Most Gulf markets gain as traders gauge prospects for US-Iran deal

Most Gulf stock markets rose on Tuesday after Washington said it was still engaging with Tehran to try to end their war, even as the U.S. blocked shipping traffic to and from Iran’s ports following the collapse of peace talks at the weekend.

Sources told Reuters that both sides had maintained an openness to dialogue, while a U.S. official said there had been progress towards an agreement.

Negotiating teams could return to Islamabad this week, four sources said on Tuesday.

Dubai’s main share index advanced 0.9%, underpinned by a 2.6% rise in blue-chip developer Emaar Properties and a 3.3% increase in toll operator Salik .

In Abu Dhabi, the index gained 0.6%, with Aldar Properties up 3.7%.

Gulf stocks were buoyed by hopes of a diplomatic breakthrough, although investors remained alert to the continued closure of the Strait of Hormuz, said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group.

Oil prices eased slightly but stayed elevated as disruption to traffic through the key shipping lane persisted, Takieddine noted.

Saudi Arabia’s benchmark index added 0.5%, supported by a 0.6% rise in Al Rajhi Bank.

However, oil major Saudi Aramco fell 0.9%.

Brent crude futures were down $1.52, or 1.5%, to $98.25 a barrel at 1235 GMT.

Takieddine said investors were looking to upcoming earnings for signs of corporate resilience that could lend fresh support to the recovery.

The Qatari index was up 0.6%, buoyed by a 0.9% gain in the Gulf’s biggest lender Qatar National Bank .

Outside the Gulf, Egypt’s blue-chip index - which traded after a two-session break - jumped 1.8%, with Commercial International Bank gaining 3.5%.