Most Gulf equities ended lower on Thursday as investors remained cautious over fast-moving developments in the Middle East, and Iran said it was reviewing a U.S. proposal to end the conflict.
President Donald Trump said Iran was eager to strike a deal, while Iranian Foreign Minister Abbas Araqchi said there had been no direct dialogue or negotiations with the U.S., although messages had been exchanged through intermediaries.
Conflicting messages from both sides over ceasefire talks have kept investors on edge. Dubai's main share index - which jumped more than 4% in the previous session - slid 3.2%, with Emaar Properties retreating 4.7% and top lender Emirates NBD tumbling 5%.
In Abu Dhabi, the index dropped 1.8%, hit by a 2.6% fall in Aldar Properties. GCC equity markets experienced pressure amid intensifying geopolitical risks, which continued to weigh on investor sentiment and reinforce caution across the region, Milad Azar market analyst at XTB MENA.
The unclear outlook for ongoing diplomatic efforts generated mixed market behavior, while evolving expectations sustained near-term volatility, Azar added.
The Qatari index declined 1.3%, weighed down by a 1.2% fall in Qatar Islamic Bank and a 4.1% slide in Qatar Gas Transport. According to Azar, GCC markets will remain vulnerable to geopolitical shifts, but diplomatic progress and strong macro fundamentals could support a rebound.
Saudi Arabia's benchmark index reversed early losses to finish 0.1% higher, helped by a 1.6% gain in petrochemical maker Saudi Basic Industries Corp and a 0.5% increase in oil behemoth Saudi Aramco. Oil rose more than 3%, rebounding from the previous session's losses, as prospects for a prolonged conflict in the Middle East stoked concerns over further supply disruptions.
The near-month-long war, sparked by joint U.S.-Israeli strikes on Iran, has effectively brought about a closure of the Strait of Hormuz, a key route for global oil and liquefied natural gas flow. Outside the Gulf.
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