Most Gulf markets gain on quarterly earnings, but geopolitical risks limit upside

Most Gulf stock markets ended higher on Thursday, as investors turned their attention to corporate earnings, although escalating regional tensions limited gains.

Dubai’s main share index gained 0.2%, helped by a 3% rise in top lender Emirates NBD . The lender reported second-quarter profit that was broadly flat from the previous quarter, as asset growth and margins remained resilient in its first full-quarter results since the onset of the U.S.-Israeli war on Iran.

In Abu Dhabi, the index rose 0.7%, buoyed by a 6.3% surge in the United Arab Emirates’ biggest lender First Abu Dhabi Bank following a rise in quarterly earnings.

FAB’s net profit for the three months ended June 30 rose to 5.72 billion dirhams ($1.56 billion), from 5.51 billion dirhams a year earlier.

Elsewhere, Abu Dhabi Commercial Bank gained 1.6%. Post trading hours, the lender recorded a steep rise in second-quarter profit.

Investors remained focused on geopolitical tensions, shipping risks, and second-quarter earnings, all of which continued to drive market sentiment, said Joseph Dahrieh, Managing Director at Tickmill. Sentiment also stayed sensitive to regional developments and their potential impact on oil exports following recent Red Sea tanker incidents.

The Qatari index dropped 0.3%, with Qatar Gas Transport retreating 1.8%.

The U.S. military said on Wednesday it had carried out another round of strikes on Iran at President Donald Trump’s direction, marking a 12th consecutive night of American attacks.

Iran’s Revolutionary Guards said an oil tanker caught fire after an explosion while attempting to navigate what they described as a mined route in the southern Strait of Hormuz, near the coast of Oman, while two other tankers turned back.

Saudi Arabia’s benchmark index rose 0.3%, with oil major Saudi Aramco closing 1% higher.

Brent crude futures were up $4.52, or 4.80%, at $98.59 a barrel by 0935 GMT, having reached their highest since June 3.

Tensions were further heightened after the Houthis said on Thursday they had attacked two Saudi oil tankers in the Bab el-Mandeb Strait, raising concerns over a potential threat to another key global energy shipping route alongside the Strait of Hormuz.

Outside the Gulf, Egypt’s blue-chip index eased 0.1%.