#Dubai leads Gulf stocks higher on hopes of de-escalation in Iran war | Reuters

Dubai leads Gulf stocks higher on hopes of de-escalation in Iran war | Reuters

Gulf stock markets ended higher on Wednesday amid hopes of a de-escalation in the Iran conflict, with Dubai leading gains as its 1 ​billion dirham ($272.3 million) support package came into effect.

U.S. President Donald Trump said on Tuesday that Washington could end ‌its military campaign within two to three weeks and that Tehran is not required to reach a deal to stop the conflict, signaling most clearly his intent to bring the month-long war to a close.

Dubai's ​main stock index (.DFMGI), opens new tab advanced 2%, led by a 5.6% surge in blue-chip developer Emaar ​Properties (EMAR.DU), opens new tab and a 4.7% jump in top lender Emirates NBD (ENBD.DU), opens new tab.

Dubai approved 1 billion dirhams ($272.26 ⁠million) in economic support measures for the business sector, effective immediately for a period of ​three to six months, the crown prince said on X on Monday.

GCC equity markets advanced as hopes ​of a de-escalation in Middle East tensions helped restore some stability. If these expectations are realized, the recovery could become more sustained over the medium term, said Milad Azar, a market analyst at XTB MENA.

Support from the Dubai government's ​new package could ease economic pressures and support growth, providing further boost to the market, ​Azar said. "Additionally, the UAE continues to benefit from resilient fundamentals."

In Abu Dhabi, the index (.FTFADGI), opens new tab gained 1.4%, with ‌Aldar Properties (ALDAR.AD), opens new tab ⁠closing 0.9% higher.

The Qatari benchmark index (.QSI), opens new tab rose 0.8%, with petrochemicals maker Industries Qatar (IQCD.QA), opens new tab finishing 3.9% higher.

Meanwhile, an Iranian cruise missile struck an oil tanker leased by state-owned QatarEnergy in Qatari waters on Wednesday, .

Saudi Arabia's benchmark index (.TASI), opens new tab added 0.2%, helped by a 1.2% gain in Saudi National Bank (1180.SE), opens new tab, the country's biggest lender by ​assets, and a 0.6% rise ​in oil giant Saudi ⁠Aramco (2222.SE), opens new tab.

In Saudi Arabia, the market has stabilized after a steady recovery this month, with still-elevated oil prices continuing to support sentiment, said Azar.

Oil, however, reversed ​earlier gains on Wednesday as uncertainty over the situation in the ​Middle East continued ⁠to unnerve markets.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab leapt more than 3%, as most of its constituents were in positive territory including Commercial International Bank (COMI.CA), opens new tab, which gained 3.1%.