Gulf stocks rise on hopes of easing of U.S.-Iran tensions, Aramco rebounds | Nasdaq

Gulf stocks rise on hopes of easing of U.S.-Iran tensions, Aramco rebounds | Nasdaq:

Gulf stocks were trading higher in early trade on Thursday, led by a 1.7% surge on the main Saudi index, on signs that tensions between the United States and Iran may be easing.

Saudi Aramco 2222.SE rose 0.8% to 34.50 riyals ($9.20), rebounding from Wednesday when it hit an intraday low of 34 riyals, its lowest level since the stock began trading on December 11 after the world's biggest initial public offering.

U.S. President Donald Trump on Wednesday backed away from days of angry rhetoric against Iran as the two countries tried to defuse a crisis over the U.S. killing of Iranian military commander Qassem Soleimani.

"The de-escalation between the U.S. and Iran should deliver some relief for Saudi Aramco shares, but the possibility of attacks on Saudi energy facilities still remains," said Edward Moya, senior market analyst at online broker OANDA. 


"Geopolitical tensions in the Middle East are not completely going away anytime soon and we could see that still weigh on Aramco shares."

The Dubai index .DFMGIwas up 1.4%, helped by a 2% gain in Emaar Properties EMAR.DUand Kuwait index .BKPclimbed 1.5%, as Kuwait Finance HouseKFH.KW surged 2.7%.