Gulf stocks dip as talks cloud sentiment
Indices retreat amid geopolitical risk
Most Gulf stock markets ended lower on Tuesday as investors stayed cautious during renewed U.S.–Iran nuclear talks and Iran’s naval drill near the Strait of Hormuz. Washington and Tehran began indirect discussions in Geneva focused on their long-running nuclear dispute, while Iran’s supreme leader warned that any U.S. attempt to depose his government would fail.
Saudi Arabia’s benchmark index fell 0.8%. Al Rajhi Bank slipped 1%, and Saudi National Bank, the kingdom’s largest lender by assets, dropped 1.2%. Moreover, oil giant Saudi Aramco eased 0.6%, tracking a muted energy backdrop.
Crude prices, a key driver for regional equities, traded largely steady as markets braced for both the U.S.–Iran talks and separate U.S.–Ukraine–Russia peace discussions, also in Geneva. However, traders flagged headline risk that could quickly spill into oil and risk assets.
Iran launched a military exercise on Monday in the Strait of Hormuz, a vital shipping chokepoint and core export corridor for Gulf producers that have urged a diplomatic resolution to the dispute. Meanwhile, Reuters reported that the U.S. military is preparing for potential weeks-long operations against Iran if ordered by President Donald Trump, citing two American officials.
Regional movers and market breadth
“The Saudi market extended its correction as geopolitical concerns weighed on sentiment,” said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group. He added: “Being closely tied to energy dynamics, it remains sensitive to a risk-off tone and oil volatility, both influenced by the talks’ outcomes.”
Dubai’s main index slipped 0.3%, pressured by a 2.2% decline in Dubai Islamic Bank. In contrast, Abu Dhabi’s benchmark finished flat. Additionally, Qatar’s index lost 0.6%, dragged by a 2.6% drop in Qatar National Bank, the Gulf’s largest lender by assets. Outside the Gulf, Egypt’s blue-chip index gained 0.7%, led by a 4% rise in Talaat Moustafa Holding.
https://www.brecorder.com/news/40407723/most-gulf-equities-retreat-on-us-iran-caution
