Gulf equities ended subdued on Sunday after marathon talks in Islamabad failed to deliver a U.S.-Iran breakthrough, clouding hopes for a lasting settlement and putting the fragile two-week ceasefire under renewed strain.
The 21-hour negotiations ended in mutual recriminations. The conflict, which began more than six weeks ago, has unsettled the global economy and sent oil prices sharply higher.
U.S. Vice President JD Vance said American officials were leaving Pakistan without a deal, while Foreign Minister Ishaq Dar stressed the need to preserve the ceasefire.
In Qatar, the index (.QSI), opens new tab eased 0.1%, hit by a 1.5% slide in petrochemical maker Industries Qatar (IQCD.QA), opens new tab and a 2% decrease in Qatar Gas Transport (QGTS.QA), opens new tab.
The benchmark index (.TASI), opens new tab in Saudi Arabia - which has been shielded from much of the regional disruption by its ability to reroute oil exports - dropped 0.3%, with ACWA Power (2082.SE), opens new tab losing 1.9%.
The kingdom said on Sunday it had restored the East-West pipeline to its full pumping capacity of about seven million barrels per day, just days after assessing damage to its energy infrastructure from attacks during the Iran conflict.
A Reuters analysis showed that Saudi Arabia benefited from firmer oil prices, with estimated March oil revenue rising year on year.
Even as diplomacy faltered, early signs of normalisation appeared in energy shipping, with three fully laden supertankers passing through the Strait of Hormuz on Saturday — the first such transit since the ceasefire.
Tehran's blockade of the Strait — a conduit for roughly 20% of global oil and LNG trade — has disrupted supplies and driven oil prices sharply higher.
Bahrain's stock index (.BAX), opens new tab was down 0.1%, while Boursa Kuwait (.BKP), opens new tab edged 0.1% higher.
Egypt's market will be closed for two days starting Sunday to observe the Easter holiday.
