Most Gulf markets gain as geopolitics keeps investors cautious

Most Gulf bourses ended higher on Tuesday as investors weighed upcoming corporate earnings, lower oil prices and renewed U.S.-Iran tensions.

President Donald Trump said on Monday the U.S. would either strike a deal with Iran or “finish the job,” reviving the prospect of military action as Tehran struck a defiant tone after the funeral of former Supreme Leader Ayatollah Ali Khamenei.

Late on Monday, Iran’s Revolutionary Guards fired at least two missiles at commercial ships transiting the Strait of Hormuz, Axios reported, citing two U.S. officials. The ships suffered significant damage but there were no casualties, the report said.

Saudi Arabia’s benchmark index rose 0.4%, with ACWA Power advancing 3.1%.

On Monday, the world’s top oil exporter cut the August official selling price of its flagship Arab Light crude for Asia by $11 a barrel, setting it at a discount of $1.50 to the average of Oman and Dubai prices. Prices for the kingdom’s four other crude grades were also reduced by $11 a barrel.

In Abu Dhabi, the index added 0.2%.

Investor attention is now shifting to the regional earnings season. Results will be closely watched for the impact of shipping disruptions and higher freight costs on margins. Until tensions in the Strait of Hormuz ease and earnings provide more clarity, Gulf markets are likely to stay range-bound and prone to headline-driven swings, said George Pavel, general manager at Naga.com Middle East.

Dubai’s main share index was up 0.1%, helped by a 2.2% gain in Emirates Integrated Telecommunications Company (du).

The company launched du Ventures, a $50 million venture capital fund managed by Shorooq, to invest in promising startups and emerging technologies, with a significant focus on UAE-based ventures.

Elsewhere, the Qatari index eased 0.1%, with Qatar Islamic Bank losing 0.7%.

Outside the Gulf, Egypt’s blue-chip index advanced 1%, led by a 2% gain in Commercial International Bank.

Egypt’s central bank is expected to keep its overnight interest rates on hold for a third consecutive meeting when its Monetary Policy Committee meets on Thursday, as a tentative easing of regional tensions offers some relief, a Reuters poll showed.