Business
Gulf stocks in red as Trump's Iran deadline looms
Gulf stocks in red as Trump's Iran deadline looms
About this update from Al Rajhi Bank
By Ateeq ShariffGulf stock markets ended lower on Tuesday, as caution prevailed ahead of a deadline set by U.S. President Donald Trump for to reopen the Strait of Hormuz to all shipping.Markets have been on edge since the U.S.-Israel war on Iran erupted in late February, with Tehran effectively closing the Strait of Hormuz, a critical chokepoint for global oil supplies, and stoking fears of higher inflation.Investors had hoped diplomatic efforts would help bring the conflict to an end, but talks have so far made no progress.Iran appeared unmoved by Trump's ultimatum to reopen the Strait of Hormuz by the end of Tuesday or face strikes on civilian infrastructure, in what could become the war's most dangerous escalation yet.Trump has set a deadline of 8 p.m. Eastern Time on Tuesday (0000 GMT Wednesday) for a deal to be reached.Saudi Arabia's benchmark index TADAWUL:TASI dropped 1.6%, with a 2.1% fall in Al Rajhi Bank TADAWUL:1120 and a 2.6% slide in petrochemical firm Saudi Basic Industries Corp TADAWUL:2010.The kingdom said on Tuesday it intercepted and destroyed seven ballistic missiles launched towards its Eastern Region, with debris falling near energy facilities, according to the defence ministry.The closure of the Strait of Hormuz and the ensuing rise in global oil prices have delivered financial windfalls to Iran, Oman and Saudi Arabia, while costing other states without alternative export routes billions of dollars, a Reuters analysis found.The market may be ripe for a correction after testing resistance in recent sessions, with investors likely to lock in gains despite earlier resilience to regional tensions, said George Pavel, general manager at Naga.com Middle East.Dubai's main share index DFM:DFMGI lost 0.8%, with blue-chip developer Emaar Properties DFM:EMAAR declining 3.9%.In Abu Dhabi, the index ADX:FADGI eased 0.3%.According to Pavel, rising tensions could weigh on markets, but solid domestic fundamentals may limit losses and lure investors back at attractive valuations.The Qatari index QSE:GNRI gave up early gains to finish 0.6% lower, hit by a 1.6% decline in Qatar National Bank QSE:QNBK.Outside the Gulf, Egypt's blue-chip index EGX:EGX30 dropped 2%, dragged down by a 4.5% plunge in Commercial International Bank EGX:COMI, as the lender traded ex-dividend.Egypt's annual inflation is expected to have accelerated to 14.7% in March from 13.4% i...