Gulf markets mixed as US-Iran tensions, Hormuz disruption weigh

Gulf stock markets saw mixed results on Thursday, as investors considered the ongoing U.S.-Iran conflict, persistent disruptions in the Strait of Hormuz, and a pessimistic outlook for oil demand. Iran and the United States are still at odds over a lasting peace deal, with Iran's senior official stating there has been no progress in reviving the interim agreement from June or establishing a timeline for its implementation.

The negative mood was exacerbated by President Donald Trump's renewed criticism of Iran's leadership and additional attacks on shipping, highlighting the risks to regional trade. Iran claims control of the Strait of Hormuz, contradicting Trump's assertion that the U.S. holds "total control" of the waterway. The U.S. increase in crude inventories and lower consumption forecasts from OPEC and the International Energy Agency further pressured the energy outlook.

Saudi Arabia's benchmark index declined by 0.2%, while Sabic Agri-Nutrients Company dropped 3.4%. Other key players, such as Saudi Aramco and Brent futures, also experienced declines. Tankers disabling their transponders to evade Houthi attacks has made tracking Saudi Arabia's Red Sea crude exports more challenging. Dubai's main share index slipped 0.2%, mainly due to a 0.9% decline in blue-chip developer Emaar Properties.

In Abu Dhabi, the index rose by 0.3%. Qatar's index fell by 0.4%, influenced by a 3% drop in petrochemical company Industries Qatar. Outside the Gulf, Egypt's blue-chip index increased by 0.4%, driven by a 5.1% jump in Telecom Egypt following a significant rise in second-quarter profits. Saudi Arabia's index decreased by 0.2%, Abu Dhabi rose by 0.3%, Dubai fell by 0.2%, and Qatar decreased by 0.4%.