Major Gulf Shares subdued on uncertainty over Hormuz deal

Gulf stock markets remained cautious on Monday as optimism over reopening the Strait of Hormuz was overshadowed by Iran's demand for US concessions, including compensation for strikes on its territory. A US official confirmed that Iran and Oman were nearing an agreement to reopen the Strait, which historically transported a fifth of global oil and LNG flows before Iran's blockade post-U.S.-Israeli strikes. However, Tehran's insistence on additional concessions left the situation uncertain.

Adding to supply security concerns, Iran-aligned Houthis claimed they had attacked Saudi Aramco's Jazan refinery on Sunday, only two days after Saudi Arabia signed a defense pact with Turkey and Pakistan amidst growing regional instability. Saudi Arabia's benchmark index slipped by 0.1%, affected by a 0.4% decline in Al Rajhi Bank shares. Maharah For Human Resources Co. plummeted 8.4%, following a significant drop in its second-quarter profit.

Despite these setbacks, Aramco shares rose by 0.3%. Brent crude futures were at $83.54 a barrel, down 1 cent, as of 0643 GMT. Dubai's main share index declined by 0.2%, primarily due to a 1.2% drop in blue-chip developer Emaar Properties. In Abu Dhabi, the index fell by 0.1%. Concerns among investors were heightened after the UAE's ADNOC reported that 15 of its vessels had been targeted while passing through the Strait of Hormuz since the conflict commenced.

The Qatari index also slipped by 0.5%, with most of its components performing poorly, including Qatar Islamic Bank, which fell by 0.6%.