Diplomacy push provides brief respite for markets
Despite signs of de-escalation and Oman’s proposal for a regional non-aggression pact, the Houthis continued drone strikes in Saudi Arabia overnight.
Stocks are up and oil prices are down following a brief diplomatic push that brought some respite to the markets. On Monday, a meeting between Saudi, Pakistani, and Turkish security officials alongside Iranian leaders in Tehran resulted in positive outcomes. Saudi stocks experienced a notable 3.4% increase, marking their biggest gain in 13 months. Concurrently, oil prices saw a decline of approximately 1% on Tuesday.
The market seemed to relax with the developments, supporting mediation efforts by Pakistan, Qatar, and Oman. Additionally, Oman proposed a regional non-aggression pact. However, the Houthis in Yemen were not informed of the de-escalation. Saudi Arabia reported intercepting ballistic missiles and drones overnight, indicating ongoing tensions.
Despite these developments, diplomatic momentum is growing. The emir of Qatar and Iran's president are set to meet with Russian President Vladimir Putin in Moscow today. Meanwhile, Israeli media reported that military leaders have resisted Prime Minister Benjamin Netanyahu's plans to launch a strike on Iran before the country's election. In response to these threats, Egypt's parliament has authorized plans to provide military support to help Saudi Arabia defend itself against the Houthis.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
