Most Gulf bourses retreat after Trump dismisses Iranian overture

Most equity markets in the Gulf region experienced a decline on Monday following US President Donald Trump's dismissal of Iran's proposal to reopen the Strait of Hormuz. Iran proposed diplomacy as the sole pathway forward, having conveyed its UN-approved framework to the United States via Qatar. President Trump labeled the overture as a sign of Iranian desperation.

Saudi Arabia's benchmark index fell by 1%, driven by a 1.7% drop in Saudi National Bank, the country's largest lender in terms of assets. Saudi Aramco, an oil major, also declined by 1.1%. Saudi Foreign Minister Prince Faisal bin Farhan visited Washington on Monday for discussions with US Secretary of State Marco Rubio, according to state media.

Qatar's index slipped by 0.5%, with Qatar Fuel falling by 3.1%. Dubai's principal share index saw a modest gain of 0.3%, bolstered by a 1.4% increase in Emirates NBD, the top lender in Abu Dhabi. In Abu Dhabi, the index lost 0.4%.

Diplomatic tensions escalated over the weekend as the Saudi-led coalition intercepted a barrage of Houthi ballistic missiles and drones aimed at the kingdom. Outside the Gulf, Egypt's blue-chip index closed 1.1% lower, with the Saudi benchmark dropping 1% to 10,579. Abu Dhabi experienced a decline of 0.4% to 10,159, while Dubai gained 0.3% to 5,998.

Qatar saw a 0.5% drop to 9,410, and Egypt's index decreased by 1.1% to 52,469. Bahrain slipped by 0.1% to 1,906, while Oman gained 0.6% to 7,590, and Kuwait added 0.1% to 9,240.