DUBAI: Gulf equities closed higher on Monday as hopes of a diplomatic off-ramp in the US-Iran war lifted investor sentiment across the region, although recent attacks on Saudi oil facilities tempered gains in the Gulf’s largest market.
Investor sentiment found support after Tehran said it would halt attacks provided Washington refrains from further strikes, following the Pentagon’s decision to pause its 13-night campaign late on Friday.
The prospect of easing hostilities alleviated some concern over supply disruptions and raised hopes that shipping through the Strait of Hormuz could eventually resume, dragging oil prices to a one-week low of USD89.23 a barrel by 1102 GMT.
Dubai’s benchmark index rose 1 percent, its strongest session in nearly a month, with gains consolidated in real estate.
Blue-chip developer Emaar Properties climbed 2 percent, while Emirates NBD gained 0.5 percent, extending gains for a third straight session after reporting quarterly results last week.
In Abu Dhabi, the index gained 0.2 percent, supported by a 0.7 percent rise in Aldar Properties ahead of its second-quarter earnings on Tuesday.
Saudi Arabia’s benchmark index closed flat, giving up early gains and after touching a two-week high earlier in the session, hit by materials weakness.