Trump administration finalizes $480M loan to expand Gulf oil, gas output

Gulf stock markets continued to rise on Tuesday as US President Donald Trump indicated he would refrain from launching military strikes against Iran for now. The decision came after regional allies, including Qatar's prime minister, urged Trump to avoid further action. Despite the naval blockade around the Strait of Hormuz remaining in place, Saudi Arabia's main stock index climbed 0.6%, driven by gains in Al Rajhi Bank (2.6%) and Saudi National (0.8%).

However, oil giant Saudi Aramco saw a decline of 1.9% amid the mixed market sentiment. The ongoing military operations in Yemen saw Saudi-led coalition forces intercept two missiles launched by Iran-aligned Houthis targeting the kingdom's capital, Riyadh. Additionally, an interdicted drone over the Eastern Province, a vital oil-producing region, could be linked to the recent volatility.

The calming regional atmosphere, coupled with the assurance that no military strikes were planned, lifted investor confidence and contributed to the upswing. Traders monitored ongoing negotiations that could alleviate shipping disruptions at crucial sea lanes. Strong third-quarter earnings, which boosted the performance of key financial institutions, also played a role in the positive market outlook, according to Milad Azar, a market analyst at XTB MENA.

Gulf bourses, including Dubai's (1.4% increase), Abu Dhabi's (0.8%), and Qatar's (0.7%), had a strong day. Dubai's main share index climbed 1.4%, propelled by a 3.5% surge in Emirates NBD. Apart from Saudi Arabia, Egypt's blue-chip index added 2.1%, with Commercial International Bank leading the charge (2.3%) after reporting improved third-quarter net interest income.