Key Takeaways
- Most Gulf equities closed down on Wednesday.
- Iran said there would be no talks with the US unless its demands are met.
- Saudi Arabia’s benchmark index fell 0.3%, while Dubai’s main share index gained 0.4%.
Most Gulf equities closed down on Wednesday, reflecting concerns over the ongoing Iran-US diplomatic standoff. Foreign Minister Abbas Araqchi stated that Iran is open to diplomacy but will defend itself, and that there has been no reply from Saudi Arabia or Yemen’s Houthis to Iran’s offer to broker talks.
Pakistan’s army chief, Field Marshal Asim Munir, who was in Tehran as part of the mediation efforts, conveyed Iran’s position to the Iranian authorities. Pakistan, a key mediator, had previously helped secure the interim Islamabad Memorandum in June, which faltered within weeks as fighting resumed.
Saudi Arabia’s benchmark index fell 0.3%, with Alinma Bank retreating 5% after reporting a drop in third-quarter profit. However, oil major Saudi Aramco rose 0.4%. The Houthis claimed attacks on Saudi energy, airport, and military sites, including an Aramco facility in Yanbu, the Shaybah oilfield, and airports in Riyadh and Abha.
Dubai’s main share index gained 0.4%, with top lender Emirates NBD rising 1.3%, while the Abu Dhabi index fell 0.6%. Shiptracker Kpler recorded at least 18 vessel attacks in the past two weeks, while LSEG analysts said Iran is hitting tankers well beyond the Strait of Hormuz, into the Gulf of Oman, jeopardising Gulf crude loadings and ship-to-ship transfers.
The Qatari index added 0.5%, snapping a five-session losing streak. Outside the Gulf, Egypt’s blue-chip index advanced 1.5%, with most of its constituents in positive territory, including Commercial International Bank, which was up 2.5%. Talaat Moustafa Group Holding (TMGH) jumped 6% after signing a deal worth 11 trillion Egyptian pounds ($202 billion) to develop, build, and operate four major mixed-use real-estate projects with the presidency.
Egyptian equities were buoyed by the deal, with the index advancing 1.5% to 52,855. Bahrain’s index eased 0.1% to 1,858, while Oman’s dropped 1.5% to 7,440. Kuwait’s index was down 0.7% to 8,766, reflecting the broader market sentiment amid the diplomatic tensions.
These market movements highlight the significant impact of geopolitical tensions on regional economies, particularly in the Gulf, where the Iran-US conflict continues to disrupt trade and investment flows.
