Gulf markets climb despite Iran impasse and Hormuz disruption

Gulf stock markets experienced a rise on Sunday, despite the ongoing Iran conflict and disruptions in the Strait of Hormuz, according to market data. Saudi Arabia emerged as the top performer, with the Tadawul All Share Index climbing 0.9 percent to reach 10,920. This increase was driven by gains in key firms such as Al Rajhi Bank, which rose 1.5 percent, and Saudi Aramco, up 1 percent.

Elevated oil prices played a role in supporting these gains, as Brent crude futures closed at $88.52 a barrel on Friday, up $1.45, or 1.67 percent from the previous trading session.

The ongoing disruption in Hormuz, a crucial energy corridor for Gulf producers, continues to present uncertainty for crude oil markets. After the February 28th war, traffic through the strait significantly decreased, posing a substantial risk to global energy markets. To mitigate this risk, Gulf producers have started utilizing alternative export routes.

However, shipping activity has recently slowed once more, with only a limited number of vessels passing through the strait on Friday, as tension persists between Washington and Tehran.

Despite the geopolitical challenges, regional markets have shown resilience in recent weeks. Saudi Arabia's Tihama Advertising, Public Relations, and Marketing surged by 7.3 percent after terminating the contract of its CEO, Hussain Masoud Al Dossari. Qatar's benchmark index added 0.2 percent to 10,045, supported by a 1.5 percent increase in Qatar National Bank.

Oman's market climbed 0.3 percent to 7,535, while Kuwait remained unchanged at 9,295. Bahrain saw a slight decline of 0.1 percent to 1,952. Egypt's EGX30 index rose 1.1 percent to 55,855, with Telecom Egypt leading the gains, increasing by 3.6 percent following a substantial rise in quarterly profits.