Gulf stocks mixed ahead of potential US-Iran UN talks

Gulf stock markets ended mixed on Tuesday as investors held back, anticipating possible US-Iran talks at the United Nations General Assembly. Tensions between the two nations remained high, following recent threats and a prolonged stalemate that has affected global energy markets and raised regional concerns. Adding to these geopolitical risks, Yemen's Houthi rebels moved closer to the Red Sea coast, complicating the already tense situation with Saudi Arabia.

Saudi Arabia's main index remained unchanged, while Al Rajhi Bank slipped 2.4%. The security alert lifted in the Najran region by Saudi civil defense indicated that the threat had subsided, despite continuous conflict with Iran-backed Houthis. Saudi Aramco, the country's oil giant, is offering immediate oil shipments through discussions to lift restrictions from areas outside the Strait of Hormuz, according to two trade sources.

The company's shares fell by 0.2%. The Qatari benchmark dropped 0.5%, after a 2.6% decline in The Commercial Bank. Dubai's primary index rose 0.6%, boosted by a 1.2% increase in the leading lender, Emirates NBD. The Abu Dhabi index gained 1.3%, following a previous decline of 1.6%. An Iranian official, quoted by Reuters, suggested that Tehran might reopen the Strait of Hormuz within a week if the US eases military pressure and lifts the port blockade.

This conditional proposal came shortly after Iran's military warned on Sunday of unrestricted retaliation if the US, supported by regional allies, resumes military operations against the country. Outside the Gulf, Egypt's major index declined slightly by 0.1%. Saudi Arabia's benchmark index closed flat at 10,681, while Abu Dhabi rose 1.3% to 10,232, Dubai increased by 0.6% to 5,997, Qatar slipped 0.5% to 9,514, Egypt fell 0.1% to 54,931, Bahrain dropped 0.1% to 1,910, Oman gained 0.1% to 7,560, and Kuwait decreased 0.5% to 9,139.