Gulf markets mixed as US-Iran tensions, Hormuz disruption weigh
- Saudi Arabia’s benchmark index was down 0.2%
Gulf stock markets ended mixed on Thursday, as investors weighed stalled efforts to end the months-long U.S.-Iran conflict, continued disruptions to shipping through the blockaded Strait of Hormuz and a softening outlook for oil demand.
Iran and the United States remain at odds over a permanent settlement, with a senior Iranian source saying there had been no progress on reviving the interim agreement reached in June or setting a timetable for its implementation.
Hopes for a breakthrough were further dampened after U.S. President Donald Trump renewed his criticism of Iran’s leadership, while fresh attacks on shipping on Tuesday underscored the risks facing regional trade.
Iran controls and manages the Strait of Hormuz, the newly appointed Basij chief Taeb said on Thursday, rebutting Trump’s claim that the U.S. had “total control” of the strategic waterway. Taeb said Washington’s attempt to weaken Iran’s regional influence through another Hormuz conflict had failed.
A surprise rise in U.S. crude inventories, coupled with lower consumption forecasts from OPEC and the International Energy Agency, added to pressure on the energy outlook.
Saudi Arabia’s benchmark index was down 0.2%, with Sabic Agri-Nutrients Company losing 3.4%.
Elsewhere, oil major Saudi Aramco lost 0.5%.
Brent futures were down $1.54, or 1.7%, at $87.44 a barrel by 1140 GMT.
The kingdom’s crude exports from the Red Sea are becoming increasingly difficult to track as tankers disable their transponders to reduce the risk of Houthi attacks, with analysts saying all recent loadings from Yanbu have been carried out “dark.”
Dubai’s main share index eased 0.2%, hit by a 0.9% fall in blue-chip developer Emaar Properties.
In Abu Dhabi, the index added 0.3%.
The Qatari index fell 0.4%, weighed down by a 3% slide in petrochemical maker Industries Qatar .
Outside the Gulf, Egypt’s blue-chip index rose 0.4%, buoyed by a 5.1% jump in Telecom Egypt following a sharp rise in second-quarter profit.
| Saudi Arabia | fell 0.2% to 10,824 |
|---|---|
| Abu Dhabi | gained 0.3% to 10,045 |
| Dubai | lost 0.2% to 5,908 |
| Qatar | dropped 0.4% to 10,021 |
| Egypt | rose 0.4% to 55,252 |
| Bahrain | added 0.1% to 1,954 |
| Oman | was up 0.4% to 7,509 |
| Kuwait | lost 0.2% to 9,298 |
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