DUBAI: Most stock markets eked out small gains on Sunday despite hopes for a diplomatic breakthrough in the US-Israeli conflict with Iran fading, with stalled talks underscoring the hardening positions of both Tehran and Washington.
Though a ceasefire has been in place since February 28, no deal has been reached to end a war that has killed thousands, driven up oil prices, fuelled inflation and dimmed global growth prospects. The war has deepened instability in the Middle East, with Tehran striking its Gulf neighbours and fighting resuming between Israel and Hezbollah in Lebanon after Prime Minister Benjamin Netanyahu ordered a forceful assault on Hezbollah targets on Saturday, putting a US-brokered ceasefire under further strain.
Saudi Arabia’s benchmark index edged 0.1 percent higher, helped by a 0.6 percent rise in Al Rajhi Bank and a 1.4 percent increase in Saudi Arabian Mining Co.
Shares in Rabigh Refining and Petrochemical Co jumped 10 percent to 12.65 riyals (USD3.37), the highest since October 2022, after the company swung to its first quarterly profit in nearly two years. Oil major Saudi Aramco eased 0.4 percent.
In Qatar, the index added 0.1 percent, supported by a 0.6 percent gain in petrochemical maker Industries Qatar.
Outside the Gulf, Egypt’s blue-chip index edged 0.1 percent higher.
Analysts in a Reuters poll have cut their forecasts for Egypt’s economic growth this year and next, citing higher energy prices and rising inflationary pressure from the Iran war. Last week the IMF reduced its projected growth to 4.2 percent in calendar 2026 from an earlier estimate of 4.7 percent.
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