Gulf markets are sunk by fading hopes of a quick resolution to the Iran war
The Gulf's major stock exchanges fell in early trading on Tuesday, as hopes of a deal ending the U.S. and Israeli war against Iran faded amid?differences? between Washington and Tehran over a proposed peace plan.
U.S. president Donald Trump stated on Monday that the ceasefire agreement with Iran is "on life support." He cited disagreements over a number of demands, such as a halt in hostilities?on all sides, the lifting a U.S. Naval Blockade, and the resumption?of Iranian oil exports.
Tehran also emphasized?its sovereignty in the Strait of Hormuz. This is a major shipping route that passes through which?a quarter of all global oil and natural gas liquefied supplies are transported.
Dubai's main index of shares fell 0.5% with the top lender Emirates NBD down 2.3%, and blue-chip developer Emaar Properties falling 1.5%.
The index in Abu Dhabi fell 0.8% due to a 2.4% drop in ADNOC Gas after a fall in the first-quarter profit. The Wall Street Journal reported on Monday that the United Arab Emirates had carried out military attacks on Iran. This included an attack in April on a refinery located on Lavan Island.
The UAE did not confirm the report immediately and has not acknowledged it publicly.
The Qatari Index was down by 0.2%.
Saudi Arabia's benchmark stock index rose 0.1%, aided by a 1.8% increase in Al Rajhi Bank?and a 0.4% rise in Saudi Aramco.
Brent crude futures rose $2 or 1.9% to $106.21 per barrel.
(source: Reuters)
