Most Gulf bourses rebound on Iran diplomacy hopes; Egypt falls ahead of Saudi defence vote

Most Gulf stock markets closed higher on Monday, with Saudi Arabia and Qatar posting their strongest gains in months, as scheduled talks between Iranian leaders and officials from Saudi Arabia, Turkiye and Pakistan raised hopes of easing tensions between the US and Iran.

The talks, set to take place in Tehran on Monday, will be the first high-level contact between the four countries since Saudi Arabia became a pressure point in the wider Iran conflict.

The Saudi benchmark index surged 3.4%, marking its largest one-day gain in over 13 months. The index also logged its first gain in six sessions and led equities in the region.

Index heavyweight Saudi Arabian Mining Co (Ma’aden) soared 7.3%, while state-owned oil behemoth Saudi Aramco jumped 1.7%.

Energy ministers from Saudi Arabia and Singapore said Saudi Aramco would start storing crude oil in Singapore from the second half of 2027, to shore up the resilience of the company’s supply chain in the region.

Qatari mediators also travelled to Tehran on Sunday. Earlier mediation efforts involving both Pakistan and Qatar helped produce an interim peace agreement in June, but the deal quickly unravelled.

In Qatar, the benchmark index climbed 2.8%, marking its best day in over five months, with every constituent in positive territory. The Gulf’s biggest lender, Qatar National Bank , surged 3.9%, posting its biggest daily gain in over five months, while Qatar Islamic Bank jumped 2.4%.

Dubai’s benchmark index rebounded to close 0.3% higher after falling 1.4% in the previous session. Industrial shares supported the index, with toll operator Salik rising 2.8%.

The Abu Dhabi index added 0.6% after a 1.2% drop in the last session. Aldar Properties rose 1.5% ahead of its third-quarter earnings, while Abu Dhabi Commercial Bank gained 1.6%.

Outside the Gulf, Egypt’s blue-chip index bucked the trend to finish 1.7% lower ahead of a parliamentary vote expected to authorise the armed forces to provide defensive support to Saudi Arabia against Yemen’s Houthis if requested.

Losses were broad-based, with Commercial International Bank Egypt and Telecom Egypt losing 1.6% and 5.7%, respectively.