Gulf Shares mixed on uncertainty over Hormuz deal

Gulf stock markets experienced a mixed day on Monday, as hopes for the reopening of the Strait of Hormuz were tempered by Iran's demand for concessions, including compensation for attacks on its territory. A U.S. official reported that Iran and Oman were nearing an agreement to reopen the strategic waterway, which typically carries a fifth of global oil and liquefied natural gas (LNG) flows.

However, Iran's insistence on further concessions created uncertainty in the market outlook. Simultaneously, the Houthis targeted Saudi Aramco's Jazan refinery, occurring just two days after Saudi Arabia signed defense agreements with Turkey and Pakistan amidst rising regional instability. Despite this, Saudi Arabia's benchmark index still rose by 0.3%, driven by a 5.4% increase in Saudi Arabian Mining Co., which reported a significant rise in quarterly profits.

Conversely, Maharah For Human Resources Co. saw a sharp decline of 8.6% due to a substantial drop in second-quarter profits.

Brent crude futures experienced a 1.7% increase, reaching $84.95 a barrel by 1218 GMT. The Gulf Cooperation Council (GCC) stock markets remained mixed, with investors grappling with ongoing geopolitical tensions in the Middle East. While Iran and Oman are reportedly close to an agreement on shipping conditions through the Strait of Hormuz, the lack of certainty is expected to maintain cautious market sentiment, according to Milad Azar, a market analyst at XTB MENA.

The UAE's ADNOC reported that 15 of its vessels had been attacked while transiting the Strait of Hormuz since the conflict began in late February. Dubai's main share index fell by 0.7%, mainly due to a 2.6% decline in blue-chip developer Emaar Properties. In Abu Dhabi, the index decreased by 0.1%. Qatar's stock market remained flat.

Outside the Gulf, Egypt's main index experienced a 0.5% decline. Saudi Arabia's index added 0.3%, and Abu Dhabi and Dubai both saw minor gains of 0.3% and 0.1%, respectively. Bahrain's index increased by 0.1%, while Oman rose by 0.3%, and Kuwait saw a slight increase of 0.1%.