Most Gulf bourses edge lower on mixed US-Iran cues

On Thursday, most Gulf stock exchanges closed lower as investors navigated between improving oil flows and ambiguous signals regarding the US-Iran conflict. Saudi Arabia's main index fell by 0.5%, dragged down by a 1.6% drop in its largest lender by assets, the Saudi National Bank. Meanwhile, the state-owned oil company Saudi Aramco saw a 0.2% increase.

Saudi Arabia had recently reinstated its East-West Pipeline and resumed tankers loading at the Red Sea port of Yanbu, following a drone attack last month that briefly halted exports from the region. The kingdom had also announced a projected 2027 budget deficit of 191 billion riyals (approximately $50.87 billion), equal to 3.6% of its GDP, according to a pre-budget statement released on Wednesday.

Qatar's benchmark index slipped 0.6%, pressured by a 2.6% decline in the performance of the Qatar International Islamic Bank. Iran disclosed on Wednesday that it had received a US response to reviving a stalled Gulf ceasefire, following US President Donald Trump's indication that he had dismissed it. Investors remained focused on regional developments, with ongoing uncertainty about the timeline and the continued disruptions in the Strait of Hormuz dampening risk appetite, according to Mahmoud Mashal, a senior market analyst at VT Markets Dubai.

Abu Dhabi's index declined 0.7%, while Dubai's main share index closed 0.5% lower. Outside the Gulf, Egypt's blue-chip index rebounded by 2.2%, ending a nine-session losing streak. Saudi Arabia's main index dropped 0.5% to 10,393, while Abu Dhabi's main share index closed 0.7% lower at 9,998. Dubai's main index fell 0.5% to 5,930, and Qatar's index decreased 0.6% to 9,192.

Egypt's benchmark index rose 2.2% to 53,055, while Bahrain's index eased by 0.2% to 1,904, Oman increased by 0.4% to 7,599, and Kuwait declined 0.6% to 9,114.