Gulf equities mixed as Hormuz uncertainty caps ceasefire optimism

DUBAI: Gulf equities ended mixed on Sunday after US President Donald Trump said Iran had committed a “serious violation” of the ceasefire, renewing uncertainty over the Strait of Hormuz and the state of US-Iran talks despite his insistence that a peace deal would happen.

Iran’s armed forces turned back two tankers in the Strait of Hormuz on Sunday after warnings over what Tasnim news agency described as “unauthorised transit.”

Tehran said on Saturday it was tightening control over the Strait of Hormuz and warned mariners that the vital energy route was closed again, while President Donald Trump said Tehran could not blackmail the United States by shutting the waterway.

Neither side disclosed details on the state of negotiations on Saturday, just days before a ceasefire in the US-Israeli war against Iran is due to expire.

Saudi Arabia’s benchmark index declined 0.8 percent, hit by a 0.7 percent fall in Al Rajhi Bank

and a 1.2 percent decrease in oil major Saudi Aramco. On Friday, oil prices settled roughly 9 percent lower after Iran said commercial shipping could resume through the Strait of Hormuz for the duration of the ceasefire, and Trump said Tehran had agreed not to close the waterway again.

In Qatar, the index finished flat in a choppy trade.

Outside the Gulf, Egypt’s blue-chip index gained 1.8 percent, buoyed by a 7.9 percent surge in Talaat Moustafa Group Holding.

The developer said it launched “The Spine” in Madinaty, a project worth over 1.4 trillion Egyptian pounds (USD27.09 billion) that it expects will generate more than 1.7 trillion Egyptian pounds in sales. At maturity, it aims to deliver over EGP 50 billion in annual recurring revenue.