Gulf stocks fall on fading prospects of US-Iran deal

Gulf stock markets experienced a decline on Tuesday as the potential for a U.S.-Iran agreement diminished, dampening hopes for a resolution to the conflict and the resumption of shipping through the Strait of Hormuz. U.S. President Donald Trump's demand for compensation for past losses further dampened sentiment, complicating diplomatic progress.

Saudi Arabia's key index fell 0.1%, with Saudi Arabian Mining Company shedding 1.2%. The postponement of Saudi Aramco's refinery restart to August 30 due to Houthi attacks on the Jazan facility also weighed on regional markets, with Aramco shares dropping 0.1%. Brent crude futures experienced a 21 cent, or 0.24%, decrease to $87.51 a barrel.

Dubai's main share index slipped 0.4%, driven by a 2.4% drop in the performance of Emirates NBD. Abu Dhabi's index decreased 0.8%, primarily due to a 0.6% fall in ADNOC Gas. ADNOC Logistics & Services, however, saw a 3.6% increase after raising its 2026 profit guidance for the third time, buoyed by higher shipping rates and record operational activity.

The Qatari index fell 0.8%, with Qatar National Bank facing a 1.2% decline. Egypt's blue-chip index also saw a minor drop of 0.1%. Overall, Saudi Arabia slipped 0.1% to 10,833, Dubai fell 0.8% to 5,880, Qatar declined 0.8% to 10,018, while Bahrain and Oman showed minor gains.