Gulf Stocks Rise as Trump Signals No Fresh Strikes on Iran

what happened

Stock markets across the Gulf opened Monday higher as investors responded to Donald Trump's comments. He suggested that fresh attacks on Iran were not likely while negotiations to bring an end to the eight-month conflict carry on. Earlier he had hinted at renewed action after the midterm vote last week, yet no major American military campaign has materialized, and Tehran has threatened to strike American and Israeli targets if one occurs.

Both countries have reported attacks on vessels in or close to the Strait of Hormuz, but that did not halt the rally. Saudi Arabia's main index climbed 0.1%, Al Rajhi Bank added 0.6%, and Perfect Presentation For Commercial Services jumped 7.7% after its quarterly earnings rose. Riyadh's alert was lifted, a day after a Houthi strike damaged an Aramco office building there. Dubai's headline index gained 0.8%, led by Emaar Properties up 3.2%; Abu Dhabi rose 0.8%, and Qatar's index added 0.4%, helped by a 1.8% gain in Industries Qatar.

why it matters

The signal lowers the near-term risk of a fresh escalation that could disrupt crude flows, but Abu Dhabi officials warn the region may stay unstable for a long time. Before the war, Hormuz carried nearly a fifth of global crude, so any renewed fighting there remains a key swing factor for oil prices.

market impact

Gulf equities: lower odds of new strikes support local stock indexes

• ▲Gulf stock markets pressure up — lower odds of new strikes on Iran boost investor sentiment

instruments