Mideast Stocks: UAE equities reverse early gains on Iran ceasefire uncertainty
UAE stocks ended lower on Friday after giving up the early gains due to U.S. President Donald Trump extending the pause on attacks on Iran's energy facilities, as uncertainty over a ceasefire in the month-old war kept investors cautious.
Washington has deployed thousands of troops to the Middle East, and Trump is weighing the use of ground forces to capture Kharg Island, Iran's main oil export hub.
An Iranian official told Reuters on Thursday that a 15-point U.S. proposal, delivered to Tehran through Pakistan, was "one-sided and unfair".
But investors drew some relief from Trump's decision to give diplomacy more time, extending by 10 days his ultimatum to strike Iranian power plants after already delaying his original 48-hour deadline by five days.
Dubai's main share index eased 0.1%, with top lender Emirates NBD retreating 3.2%.
UAE equities were broadly steady today, pausing after their recent rebound as investors stayed cautious amid ongoing regional tensions. Hopes for a diplomatic breakthrough are offering some support, but the absence of a clear de-escalation signal is keeping sentiment in check, said Joseph Dahrieh, managing director at Tickmill.
That said, domestic fundamentals remain solid. Strong economic momentum, ample liquidity and resilient corporates are helping limit losses after the recent correction, Dahrieh said.
In Abu Dhabi, the index was down 0.1%.
The UAE has told the U.S. and other Western allies that it is prepared to join a multinational maritime taskforce to reopen the Strait of Hormuz, the Financial Times reported on Friday, citing people familiar with the matter.
Oil rose on Friday but was headed for its first weekly loss since February 9 after Trump extended the pause on attacks on Iran's energy sites, while ceasefire uncertainty kept investors cautious.
