Most Gulf stocks in red as Trump rebuffs Iran sanctions easing

On Wednesday, most Gulf equity markets closed lower, despite increasing efforts by Qatari mediators to resolve tensions in the Middle East. US President Donald Trump's refusal to concede to Iran's demands prevented any significant progress in negotiations. The Islamic Revolutionary Guard Corps urged American voters to replace Trump's congressional allies, signaling growing domestic opposition.

As US forces prepared to withdraw from Iraq, Saudi Arabia's benchmark index slipped 0.1%, driven by a 0.5% decline in the Saudi National Bank, the nation's largest lender by assets. Saudi Aramco, an energy giant, saw a 0.2% increase. The Qatari benchmark fell 0.7%, with Qatar National Bank leading the decline at 2.3%. Dubai's main share index fell 0.5%, dragged down by a 1.8% drop in Emirates NBD, another top lender.

Abu Dhabi's index ended 0.6% lower. Outside the Gulf, Egypt's blue-chip index slipped 0.8%, with Commercial International Bank suffering a 1.3% loss. Investors remained focused on geopolitical developments, as renewed efforts to secure a US-Iran deal offered little immediate reassurance. Milad Azar, a market analyst at XTB MENA, noted that while regional export prospects brightened with Saudi Arabia resuming crude tanker loadings at its Red Sea terminal in Yanbu and restarting operations along the East-West Pipeline, persistent disruptions in the Strait of Hormuz kept tensions elevated.

Qatar continued shuttle diplomacy to de-escalate the seven-month conflict between Washington and Tehran, despite President Trump's rejection of reports suggesting sanctions relief for Iran. Trump had stated that he "offered them nothing" and refused to accept media reports of possible sanctions relief for Iran, emphasizing that Iran needed to show "concrete progress" on the nuclear issue before any concessions could be considered.