Gulf markets rise as investors assess Iran war, shipping risks

Most Gulf markets ended higher on Wednesday, as investors weighed hopes for a pause in the US-Israeli war on Iran against anxiety about shipping risks in the Strait of Hormuz.

Investors were assessing signs of de-escalation against shipping risks, but recent strikes on tankersin the Strait and on regional energy infrastructure suggested risks of renewed escalation remained.

Saudi Arabia’s benchmark index reversed early losses to close 1.4% higher, with oil major Saudi Aramco advancing 1.6%.

“Most Gulf markets inched up as investors assessed ongoing security risks and watched for progress in regional mediation efforts. While some headway was evident, worries about renewed escalation persisted,” said Ranim Turfa, head of research and market analysis, MENA, at Tickmill. “Continued risks to energy flows along crucial shipping routes kept sentiment cautious, with attention centred on credible diplomatic progress.”

Elsewhere, Abdullah Al Othaim Markets Co jumped 7.1% after the supermarket operator cut its quarterly loss compared with the prior quarter.

Advanced Building Industries Co plunged 6.5%, the most on the index, following a steep decline in third-quarter profit.

Dubai’s main share index gained 0.8%, with top lender Emirates NBD increasing 4.3%.

In Abu Dhabi, the index edged 0.3% higher.

The Qatari index declined 0.5%, weighed down by a 1.4% slide in petrochemical maker Industries Qatar .

Outside the Gulf, Egypt’s blue-chip index finished flat, with tobacco monopoly Eastern Company leaping 4.2%, after posting a sharp rise in third-quarter profit.

The regional gains came after the Saudi-led coalition said it had intercepted two missiles fired by the Houthis at Riyadh, one ballistic and one cruise, plus a ballistic missile aimed at Saudi Arabia’s southern region and a drone over the oil-rich east.

Civil defence alerts went out in the capital and in the southern cities of Abha and Khamis Mushait before authorities said the danger had passed.