Most Gulf bourses rise on oil supply recovery, diplomacy hopes
Most Gulf equity markets closed higher on Wednesday, buoyed by restored crude flows from a key Saudi pipeline and growing optimism over a diplomatic resolution to the US-Iran conflict. Global oil markets faced downward pressure on Tuesday after Saudi Arabia restarted operations at its East-West Pipeline, with three sources indicating crude exports from the Red Sea port of Yanbu could soon resume…
Gulf equity markets experienced gains on Wednesday, propelled by the resumption of oil flows from the critical Saudi East-West Pipeline and mounting confidence in a diplomatic solution to the US-Iran conflict. Oil markets experienced downward pressure on Tuesday, following Saudi Arabia's restoration of operations at the East-West Pipeline. Reports suggest crude exports from the Red Sea port of Yanbu may soon commence, as broader signs of increasing Middle Eastern supply emerge.
Despite US President Donald Trump's fluctuating rhetoric, alternating between aggressive threats and hints of an impending agreement following Iranian resistance, diplomatic initiatives at the United Nations demonstrated progress. This growing de-escalation, alongside the resurgence of regional supply, helped alleviate market strain, pushing benchmark Brent crude below the $100-a-barrel threshold for the first time since September 8.
Dubai's primary share index edged up by 0.2%, driven by a 2.8% rise in toll operator Salik Co. Geopolitical concerns persisted for investors, as Milad Azar, market analyst at XTB MENA, noted. Although the Strait of Hormuz's limited traffic maintained a degree of caution, renewed US-Iran diplomacy and indications of a potential reopening of the waterway bolstered sentiment. Investors are now eagerly anticipating concrete diplomatic timelines to solidify enduring stability.
In Qatar, the index climbed by 0.3%, with Qatar National Bank, the Gulf's largest lender, up 0.5%. Abu Dhabi's index rebounded from an early decline, concluding 0.4% higher. On Wednesday, the Saudi stock market observed a closure due to a public holiday.
Outside the Gulf, Egypt's blue-chip index fell by 1.3%. Meanwhile, Egypt's central bank is expected to hold interest rates steady on Thursday, according to a Reuters poll, as inflation remains modestly increasing and policymakers remain cautious about resuming rate cuts due to persistent regional risks. Abu Dhabi closed 0.4% higher at 10,269, Dubai rose 0.2% to 6,008, Qatar climbed 0.3% to 9,546, and Egypt declined 1.3% to 54,245.
Bahrain slipped by 0.4% to 1,903, Oman remained flat at 7,557, and Kuwait increased by 0.9% to 9,224.
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