Gulf stocks soar on US-Iran ceasefire deal

Gulf stock markets surged on Wednesday as global equities rallied after US President Donald Trump agreed to a two-week ceasefire with Iran. The deal depends on Iran pausing its blockade of the Strait of Hormuz, a key route for about one-fifth of global oil and liquefied natural gas shipments.

Iranian Foreign Minister Abbas Araqchi said Tehran would halt counter-attacks and allow safe passage if assaults against it stopped. Pakistani Prime Minister Shehbaz Sharif invited US and Iranian delegations to meet in Islamabad on Friday.

Dubai’s main index jumped as much as 8.5 per cent, its largest intraday gain in over 11 years, led by Emaar Properties up 9.8 per cent and Emirates NBD Bank rising 11.3 per cent.

Abu Dhabi’s index climbed 4.9 per cent, boosted by First Abu Dhabi Bank (8.3 per cent), Aldar Properties (8.8 per cent), Adnoc Gas (3.8 per cent), and Abu Dhabi Ports (9.8 per cent).

Qatar’s index rose 3.4 per cent, with Industries Qatar up 6.2 per cent and Qatar Gas Transport surging 8 per cent, while Qatar National Bank gained 3.7 per cent. Saudi Arabia’s index opened 1.4 per cent higher, led by Saudi Aramco (2.1 per cent) and Al Rajhi Bank (2.4 per cent).

Despite the gains, investors remain cautious due to uncertain US policies and higher risk levels affecting valuations. UAE deputy CEO Tariq Qaqish noted government support for banks and SMEs would continue to underpin market confidence.

Attribution: Reuters