Gulf equities mixed amid escalating US-Iran conflict; Qatar gains

BENGALURU: Gulf stock markets ended mixed on Tuesday as renewed military action between the U.S. and Iran weighed on investor sentiment, while Qatar’s index bucked the trend, supported by higher oil prices.

U.S. President Donald Trump threatened further strikes against Iran on Monday following the first direct exchange of attacks in a month, escalating tensions in a conflict that had recently shifted into an economic standoff.

Iran said on Tuesday it would reciprocate if the United States honoured its commitments under a June interim deal to halt the conflict, though tensions remained elevated following Trump’s latest threat.

Saudi Arabia’s benchmark index fell 0.2%, pressured by real estate, communication and financial stocks. Saudi National Bank, the kingdom’s largest lender by assets, dropped 1.1%, while developer Dar Al Arkan Real Estate Development slid 1.6%.

Al Moammar Information Systems surged 7.2% after the IT solutions provider said it had received two purchase orderswith a combined value of 301.2 million riyals ($80.3 million).

Abu Dhabi’s benchmark index lost 0.3%, with most sectors ending lower. First Abu Dhabi Bank , the UAE’s largest lender, fell 1.8%, while Alpha Dhabi Holding slipped 0.9%.

Alpha Dhabi said on Monday it had doubled its commitment to $1 billion in MICAD Credit JV, a private-credit venture managed by Mubadala Capital, and increased its stake in the venture to 40% from 20%.

Dubai’s main index was little changed, as losses in communication, consumer staples and finance offset gains in other sectors. Emirates Integrated Telecommunications fell 4.2%, while parking operator Parkin Company gained 2.8%.

Qatar’s benchmark snapped a two-session losing streak to rise 0.5%, with most sectors advancing. Qatar Fuel Company climbed 4.1%, while Qatar National Bank , the region’s largest lender, added 1.1%.

Oil prices, a key catalyst for Gulf markets, rose 1.5% on concerns over supply disruptions, with Brent crude trading at $91.83 a barrel by 1225 GMT.

“GCC stock markets were mixed as U.S. President’s threat of additional military operations against Iran fuelled caution and cast doubt on diplomatic efforts,” said Daniel Takieddine, co-founder and chief executive of Sky Links Capital Group.

“However, strong local fundamentals continue to act as a counterweight, limiting downside risks,” he added.

Outside the Gulf, Egypt’s blue-chip index gained 1%, with most of its constituents advancing. Commercial International Bank rose 2%, while Abu Qir Fertilizers and Chemical Industries surged 8.8%.