Most Gulf markets inch higher on hopes of US-Iran peace talks

Most Gulf equity markets ended marginally higher on Tuesday, supported by reports that Iran is considering attending peace talks with the United States, raising cautious hopes for diplomacy as the two-week ceasefire nears its end.

A senior Iranian official told Reuters on Monday that Tehran was “positively reviewing” participating in the talks in Pakistan, which is making efforts to U.S. blockade of Iranian ports, which has emerged as a major obstacle to reviving negotiations.

However, the official stressed that no final decision had been taken, while Iranian Foreign Minister Abbas Araqchi said continued U.S. violations of the ceasefire remained a serious impediment to the diplomatic process.

Iran’s top negotiator and parliament speaker, Mohammad Baqer Qalibaf, reiterated that Tehran would not negotiate under threat. Shipping through the Strait of Hormuz — which carries about a fifth of global oil supply — remained limited.

Dubai’s main share index - which fell 2.1% in the previous session - closed up 0.3%, helped by a 0.3% rise in blue-chip developer Emaar Properties .

In Abu Dhabi, the index edged 0.2% higher.

GCC equity markets stabilized as investor focus shifted to the next round of regional diplomacy, with improving expectations of de-escalation offering near-term support despite lingering geopolitical risks. Oil prices are likely to remain volatile as the situation evolves, said Joseph Dahrieh, managing director at Tickmill.

“In the event of clearer diplomatic progress, UAE equities could be well-positioned to extend their recovery trajectory.”

The Qatari index closed up 0.1%, with petrochemical maker Industries Qatar rising 0.8%.

On the other hand, Saudi Arabia’s benchmark index dipped 0.2%, with Saudi National Bank, the country’s biggest lender by assets, losing 2.4%.

Oil major Saudi Aramco eased 0.2%.

Brent crude futures edged down by 18 cents to $95.30 a barrel.

Outside the Gulf, Egypt’s blue-chip index gained 0.3%.