DUBAI: Most Gulf stock markets ended lower on Monday amid signs that US-Iran talks have stalled, leaving the crucial Strait of Hormuz effectively closed.
US President Donald Trump on Sunday dismissed Iran’s response to a US proposal for peace talks aimed at ending their war, calling Tehran’s demands “totally unacceptable.”
Iran’s proposal called for a comprehensive end to the war, sanctions relief, reparations and recognition of its control over the strait, Iranian media reported.
Iran has effectively closed the strait since the war began in late February, disrupting a vital corridor that typically carries about a fifth of the world’s oil and gas.
Dubai’s main share index fell 1.4 percent, hit by a 1.8 percent drop in blue-chip developer Emaar Properties and a 1.7 percent slide in toll operator Salik. Budget airline Air Arabia declined 2.1 percent.
While relative calm has offered some support to sentiment, the lack of progress in US-Iran talks is keeping investors cautious and could weigh on stocks, said Joseph Dahrieh, managing director at Tickmill.
In Abu Dhabi, the index retreated 0.5 percent, with Aldar Properties losing 2.3 percent.
The United Arab Emirates’ air defences intercepted two drones from Iran on Sunday, the defence ministry said, the latest in renewed attacks on the oil-rich Gulf state.
Saudi Arabia’s benchmark index gained 0.4 percent, led by an 8 percent surge in ACWA Power after it reported higher first-quarter revenue, despite a fall in profit. Oil major Saudi Aramco added 0.8 percent, a day after reporting a 25 percent rise in first-quarter profit, as its East-West pipeline ran at full capacity to offset disruptions linked to the Strait of Hormuz.
The Qatari index eased 0.3 percent.
A cargo vessel travelling from Abu Dhabi was struck by a drone on Sunday in Qatari waters northeast of Mesaieed port, causing a small fire that was quickly contained, Qatar’s defence ministry said. No injuries were reported, and the vessel continued to port.