Major Gulf Shares subdued on uncertainty over Hormuz deal

Major Gulf stock markets traded cautiously on Monday as optimism over reopening the Strait of Hormuz was complicated by Iran’s demand for US concessions, including compensation for strikes on its territory.

A US official said Iran and Oman were close to a deal to reopen the Strait of Hormuz, which carried a fifth of global oil and LNG flows before Iran’s blockade following US-Israeli strikes.

But Tehran’s demand for further concessions kept the outlook uncertain.

In a further blow to supply security, Iran-aligned Houthis said they struck Saudi Aramco’s Jazan refinery on Sunday, just two days after Saudi Arabia signed a defence pact with Turkey and Pakistan amid escalating regional instability. Saudi Arabia’s benchmark index eased 0.1%, hit by a 0.4% fall in Al Rajhi Bank.

Maharah For Human Resources Co plunged 8.4% following a steep drop in second-quarter profit. However, Aramco shares were up 0.3%.

Brent crude futures stood at $83.54 a barrel, off 1 cent, by 0643 GMT.

Dubai’s main share index fell 0.2%, hit by a 1.2% slide in blue-chip developer Emaar Properties.

In Abu Dhabi, the index was down 0.1%.

Adding to investor concerns, the UAE’s ADNOC said on Friday that 15 of its vessels had been attacked while transiting the Strait of Hormuz since the conflict began.

The Qatari index dropped 0.5%, with most of its constituents in negative territory including Qatar Islamic Bank, which retreated 0.6%.