Gulf markets rise as oil gains lift sentiment

Most Gulf stock markets closed higher on Sunday, boosted by a surge in oil prices. This followed U.S. President Donald Trump's threat of economic sanctions against Iran's trading partners, raising hopes for tighter crude supplies in the weeks ahead. Oil prices climbed on Friday, with Brent crude settling at $94.39 per barrel. Tensions between the United States and Iran intensified, with both nations exchanging strong statements prior to Monday's expected announcement of new U.S. economic sanctions.

These sanctions could impact the Islamic Republic and its major trading partners, such as China. Saudi Arabia's main index saw a 1.1% increase, led by gains in materials and financial firms. Al Rajhi Bank climbed 2.1%, while Saudi Arabian Mining surged 4%. National Shipping Company of Saudi Arabia jumped 9.5% to hit its highest closing level in two decades.

Saudi crude exports reached 3.993 million barrels per day in June, up from a record low of 3.434 million bpd in May, according to the Joint Organizations Data Initiative. Saudi Aramco restarted oil loading from inside the Strait of Hormuz and has additional tankers awaiting to load, as the state-owned energy company offers spot heavy crude cargoes.

Qatar's benchmark index edged up 0.1%, aided by gains in communications, financial, energy, and materials sectors. Qatar National Bank, the largest regional lender, rose 1.6%, and Qatar Gas Transport gained 1.5%. Outside the Gulf, Egypt's top blue-chip index extended its gains for a second day, closing 1.1% higher as most shares advanced.

Commercial International Bank increased 1.3%, and Telecom Egypt climbed 3.1%. Telecom Egypt's management announced it would join the FTSE Emerging Markets Index following the index provider's semi-annual review for September. Meanwhile, Egypt's central bank maintained its overnight interest rates unchanged on Thursday. Saudi Arabia's index rose 1.1% to 11,079 points, Qatar climbed 0.1% to 9,688 points, Kuwait surged 0.8% to 9,309 points, Bahrain remained flat at 1,944 points, Oman fell 0.2% to 7,509 points, and Egypt increased 1.1% to 55,350 points.