Gulf Markets Gain on Hopes Iran Strikes Will Stay Off the Table

DUBAI: Gulf stock markets closed mostly higher on Monday as investors welcomed US President Donald Trump’s indication that fresh strikes on Iran were unlikely, provided negotiations continued.

The remarks improved market sentiment after eight months of conflict, although reports of attacks on shipping near the Strait of Hormuz kept regional security concerns in focus.

Trump’s comments came amid reports from the US military and Iranian state media that vessels had been attacked in or near the strategic waterway. Before the conflict, the Strait of Hormuz carried nearly one-fifth of global crude oil supplies.

Saudi Arabia and Dubai Lead Regional Gains

Saudi Arabia’s benchmark index rose 0.9% to 10,107 points. Al Rajhi Bank gained 1.9%, while Perfect Presentation for Commercial Services climbed 4.3% after reporting higher quarterly profits.

Dubai’s main share index advanced 1% to 6,087 points, supported by a 2.4% increase in blue-chip developer Emaar Properties.

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Abu Dhabi’s index also gained 1%, closing at 9,483 points. Qatar’s benchmark rose 0.9% to 10,108 points, led by a 1.5% increase in Qatar National Bank, the Gulf’s largest lender.

Egypt’s blue-chip index advanced 1.2% to 51,415 points. Bahrain’s market finished flat, while Oman declined 0.4%. Kuwait’s index added 0.2%.

Strait of Hormuz Disruptions Keep Investors Cautious

Despite the gains, disruptions to shipping through the Strait of Hormuz continue to weigh on regional sentiment.

Daniel Takieddine, co-founder and chief executive of Sky Links Capital Group, said resilient economic data across the region was encouraging investors to buy shares despite shipping concerns.

Saudi authorities also lifted an alert in Riyadh on Monday. The move followed a Houthi attack that damaged an Aramco office building in the city a day earlier.

Trump had previously suggested that the United States could renew attacks on Iran after last week’s midterm elections. Tehran has warned it would target US and Israeli interests in response to any such action.

UAE Official Warns of Prolonged Regional Uncertainty

Anwar Gargash, a senior Emirati official, cautioned that the region could face an extended period of instability.

He said a comprehensive political agreement between Washington and Tehran appeared difficult to achieve.

Gargash urged regional leaders to prepare for prolonged uncertainty, warning that neither a decisive resolution nor a stable regional order could be taken for granted.

Egyptian Fertiliser Stocks Decline

While Egypt’s benchmark index gained 1.2%, fertiliser companies faced selling pressure.

Abu Qir Fertilizers fell 2.7%, while Misr Fertilizers Production declined 2.6%.

Egypt has informed fertiliser producers of a further 33% reduction in their gas supplies, according to a statement from Abu Qir and industry officials.

The move reflects Cairo’s efforts to reduce dependence on expensive liquefied natural gas imports. However, lower gas supplies