Most Gulf stock markets ended lower on Thursday as investors awaited clarity on restoration of shipping through the Strait of Hormuz, while reports of attacks on Saudi tankers in the Red Sea and Gulf of Aden heightened concerns.
Iran and Oman have agreed on coordinates for a shipping route through the Strait, with a joint announcement expected soon, Iran said, unless outside parties intervene.
The move coincides with a proposed Iran-Oman framework that, according to Reuters sources, would give Tehran control over vessels entering the Gulf — a major concession over a vital global energy corridor.
While President Trump has said a deal to reopen the key waterway is near, U.S. officials have ruled out accepting Iranian control. Tehran has also warned Gulf states that any new U.S. strike would trigger attacks on critical regional energy infrastructure.
Saudi Arabia’s benchmark declined 0.7%, weighed down by a 4.1% slide in ACWA Power Co and a 0.7% drop in Al Rajhi Bank. Oil major Saudi Aramco declined 0.9%.
Yemen’s Houthis said on Wednesday they had launched a missile attack on a Saudi oil tanker off the coast of the kingdom’s Red Sea port city of Yanbu and another missile attack on a Saudi oil tanker in the Gulf of Aden.
Dubai’s main share index retreated 1.5%, ending four sessions of gains, hit by a 3% slide in blue-chip developer Emaar Properties.
In Abu Dhabi, the index added 0.1%.
Investors are awaiting further diplomatic developments in the region. Hopes for renewed U.S.-Iran talks may lift stocks, but lingering uncertainty could limit gains.
Markets are also watching the Iran-Oman agreement’s impact on Strait of Hormuz traffic amid ongoing supply and security risks, said Daniel Takieddine, co-founder and CEO, Sky Links Capital Group.
The Qatari index dropped 0.7%, with petrochemical maker Industries Qatar losing 1.4%.
Outside the Gulf, Egypt’s blue-chip index closed flat.
Saudi Arabia fell 0.7% to 10,812
Abu Dhabi added 0.1% to 10,121
Dubai dropped 1.5% to 5,918
Qatar lost 0.7% to 10,112
Egypt finished flat at 54,677
Bahrain eased 0.1% to 1,963
Oman gained 0.3% to 7,368
Kuwait slipped 0.3% to 9,296
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