Dubai leads Gulf gains as investors assess US midterm fallout and Iran standoff

Most Gulf markets closed higher on Wednesday, with Dubai leading regional gains as investors assessed the US midterm fallout and looked to Washington’s next move in the Iran war.

US President Donald Trump conceded that the Iran war contributed to his party’s crushing midterm losses, which handed Democrats control of both the House and the Senate.

Dubai’s main share index jumped 4%, with top lender Emirates NBD surging 6.1% and blue-chip developer Emaar Properties increasing 4.4%.

The property giant is offering to buy all Emaar Development shares it doesn’t already own, at AED 15 per share in cash, through its wholly owned unit, Emirates Property Holdings. Emaar Development shares rose 4.9%.

Saudi Arabia’s benchmark index gained 1.7%, lifted by a 2.2% rise in Al Rajhi Bank.

The US carried out “defensive” strikes on Iran’s Qeshm island targeting surface-to-air missiles used against US assets, a US official said on Tuesday. Another official said the strikes appeared limited and did not signal a return to major combat operations.

Trump suggested in a Tuesday interview with the Financial Times that he was satisfied with the current standoff with Iran.

Sentiment strengthened on progress in mediation efforts, while reports that the US is unlikely to take military action helped anchor gains. Solid domestic fundamentals and the ongoing third-quarter earnings season continued to provide a supportive backdrop, signalling resilience in the economy, said Hani Abuagla, Senior Market Analyst at XTB MENA.

In Qatar, the index leapt 2.8%, with almost all its constituents in positive territory, including the Gulf’s biggest lender Qatar National Bank , which was up 5.3%.

Doha announced on Tuesday that Washington and Tehran remain dedicated to mediation and are examining proposals meant to close the distance between them.

Qatari officials also reported recent progress in discussions with each side, and efforts to shrink the differences between them are still underway.

The Abu Dhabi index gave up early gains to finish flat.

Outside the Gulf, Egypt’s blue-chip index concluded 2.8% higher.

Egypt’s Foreign Minister Badr Abdelatty told Iranian counterpart Abbas Araqchi that all sides must show flexibility, pursue a political solution to the regional crisis, and maintain restraint to avoid military escalation, Egypt’s foreign ministry said on Tuesday.