Slim gains for Gulf bourses capped by lack of progress to end Iran war
- Saudi Arabia’s benchmark index edged 0.1% higher
Most stock markets closed modestly higher on Wednesday, led by one-off gains for individual stocks, while dimming hopes of a deal to end the Iran war weighed on broader market sentiment.
A senior Iranian source told Reuters that Tehran and Washington had not held talks on extending the ceasefire, as Iran considered the agreement to have had no defined dates.
The United States and Yemen’s Houthis reported separate shipping attacks on Tuesday.
Iran’s top security official, Mohsen Rezaei, said the Strait of Hormuz would remain closed unless Washington accepts Tehran’s terms for ending the war, including the release of frozen Iranian assets and an end to other regional conflicts.
Oil prices gained amid renewed pessimism about a quick end to the conflict. Brent crude futures climbed 1.4% to settle at $88.91 per barrel and U.S. crude rose 1.3% to $83.20.
Saudi Arabia’s benchmark index edged 0.1% higher, helped by a 1.5% rise in Saudi Arabian Mining Co which had closed 1.2% lower on Tuesday.
Petrochemical maker Saudi Basic Industries Corp retreated 3.1% as the firm traded ex-dividend.
Yemen’s Iran-aligned Houthis attacked a Saudi ship carrying military equipment in Bab el-Mandeb, Houthi-run news agency Saba reported.
Dubai’s main share index rose 0.7%, led by a 1.4% gain in blue-chip developer Emaar Properties.
According to Daniel Takieddine, co-founder and CEO of Sky Links Capital Group, markets are likely to remain sensitive to developments around the Strait of Hormuz: a credible de-escalation could revive risk appetite, while any further disruptions may weigh on sentiment and increase pressure on regional assets.
In Abu Dhabi, the index was up 0.1%.
Shipping data showed just six vessels transited the Strait of Hormuz on Monday, versus a 10-day average of about 11. Before the war, the vital waterway handled roughly 125 to 140 vessels a day.
The Qatari index finished 0.4% higher, with petrochemical firm Industries Qatar gaining 1%.
Outside the Gulf, Egypt’s blue-chip index was up 0.4%.
| Saudi Arabia | rose 0.1% to 10,844 |
|---|---|
| Abu Dhabi | added 0.1% to 10,013 |
| Dubai | gained 0.7% to 5,020 |
| Qatar | was up 0.4% to 10,056 |
| Egypt | increased 0.4% to 55,040 |
| Bahrain | down 0.2% to 1,952 |
| Oman | gained 0.2% to 7,482 |
| Kuwait | up 0.3% to 9,313 |
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