Business
Most Gulf markets gain as investors assess US-Iran peace deal
Most Gulf markets gain as investors assess US-Iran peace deal
About this update from Al Rajhi Bank
By Ateeq ShariffMost Gulf stock markets closed higher on Wednesday as investors weighed an interim U.S.-Iran peace deal.Some details of the accord emerged on Tuesday, with President Donald Trump saying the arrangement would prevent Tehran from acquiring a nuclear weapon. A U.S. official indicated that Iran would be permitted to resume oil sales once the deal is signed on Friday.The memorandum of understanding extends a fragile ceasefire reached in April by 60 days, allowing more time for negotiations toward a lasting settlement.On Wednesday, Trump said the MoU with Iran was not yet final and warned he could resume military strikes if he found its terms unsatisfactory or if Tehran failed to "behave."Under the proposed terms, the United States would lift its blockade of Iranian ports, while Tehran would restore oil tanker passage through the Strait of Hormuz, which has been effectively shut since the war started in late February.Saudi Arabia's benchmark index TADAWUL:TASI edged 0.3% lower, weighed down by a 0.4% drop in Al Rajhi Bank TADAWUL:1120 and a 0.6% decrease in oil major Saudi Aramco TADAWUL:2222.Brent crude futures ICEEUR:BRN1! were up 54 cents, or 0.7%, to $79.50 a barrel by 1208 GMT.Separately, the kingdom's new airline, Riyadh Air, won the right to operate flights to and from the United States, the U.S. Transportation Department said in an order Tuesday.Dubai's main share index DFM:DFMGI gained 1%, led by a 3.4% jump in blue-chip developer Emaar Properties DFM:EMAAR.In Abu Dhabi, the index ADX:FADGI added 0.3%.The Qatari benchmark QSE:GNRI rose 0.2%, with Qatar National Bank QSE:QNBK, the Gulf's biggest lender, closing 0.3% higher.Investor sentiment was supported by the announcement of an interim agreement between the two countries, though caution may persist as upcoming negotiations could still trigger volatility, said Daniel Takieddine Co-founder and CEO, Sky Links Capital Group.Outside the Gulf, Egypt's blue-chip index EGX:EGX30 climbed 1.1%.Saudi ArabiaTADAWUL:TASI fell 0.3% to 11,115Abu DhabiADX:FADGI up 0.3% to 9,996DubaiDFM:DFMGI climbed 1% to 6,116QatarQSE:GNRI gained 0.2% to 10,576EgyptEGX:EGX30 advanced 1.1% to 52,622BahrainBAHRAIN:BHBX gained 0.8% to 2,016Oman(.MSX30) down 0.7% to 7,594KuwaitKSE:BOURSA fell 0.2%, to 9,279