Key Takeaways
- Most Gulf equity markets closed higher on Wednesday.
- Saudi Arabia restarted operations at its East-West Pipeline, allowing crude exports from Yanbu to resume.
- Brent crude fell below $100 a barrel for the first time since September 8.
Most Gulf equity markets saw gains on Wednesday, driven by restored crude flows from a key Saudi pipeline and growing optimism over a diplomatic resolution to the US-Iran conflict.
Saudi Arabia has restarted operations at its East-West Pipeline, with three sources indicating that crude exports from the Red Sea port of Yanbu could soon resume. This development has contributed to a broader rise in Middle Eastern supply.
Despite US President Donald Trump's alternating threats and hints of an imminent accord, diplomatic efforts at the United Nations have gained ground, alleviating market strain and pushing Brent crude below the $100-a-barrel mark for the first time since September 8.
In Dubai, the main share index edged 0.2% higher, with a 2.8% rise in toll operator Salik Co. helping the market. Market analyst Milad Azar from XTB MENA noted that while subdued traffic through the Strait of Hormuz kept caution elevated, renewed U.S.-Iran diplomacy and reports of a potential reopening of the waterway buoyed sentiment.
Qatar's index rose 0.3%, with Qatar National Bank, the Gulf’s biggest lender, gaining 0.5%. In Abu Dhabi, the index reversed early losses to finish 0.4% higher. The Saudi stock market was closed for a public holiday.
Outside the Gulf, Egypt’s blue-chip index retreated 1.3%, while its central bank is expected to leave interest rates unchanged on Thursday, as inflation eases only gradually and regional risks keep policymakers cautious.
Bahrain's index dropped 0.4% to 1,903, while Oman remained flat at 7,557. Kuwait gained 0.9% to 9,224, reflecting the overall positive trend in the region.
Investors remain cautious, with the Strait of Hormuz traffic still a concern, but the renewed diplomatic efforts and recovering supply have provided a boost to the markets.
