Gulf Stock Markets Fall as US Iran Peace Hopes Dim

Regional equity indices across the Gulf recorded losses on Tuesday as market sentiment soured following a downturn in diplomatic expectations between the United States and Iran. Investors recalibrated expectations regarding maritime passage through the Strait of Hormuz after political statements raised doubts over an impending deal, according to reports from Business Recorder.

Hardening rhetoric from U.S. President Donald Trump, who called for financial compensation concerning past military and civil losses, contributed to the diplomatic stalemate. The lack of momentum toward a resolution weighed on regional investor confidence across major Middle Eastern exchanges.

Saudi Arabia’s main index slipped 0.1%, weighed down by a 1.2% decline in Saudi Arabian Mining Company. Energy giant Saudi Aramco saw its shares tick down 0.1% after announcing a delay in bringing its 400,000-barrel-per-day Jazan refinery back online until August 30. The operational setback followed claims by Yemen’s Houthi movement that they launched an attack on the facility over the weekend.

Meanwhile, international crude benchmarks softened alongside equity weakness. Brent crude futures decreased by 21 cents, or 0.24%, trading at $87.51 per barrel by 1138 GMT.

Trading in the United Arab Emirates reflected similar caution. Dubai’s financial benchmark dropped 0.4%, impacted heavily by a 2.4% retreat in shares of top lender Emirates NBD. In Abu Dhabi, the main index closed 0.8% lower, influenced by a 0.6% fall in ADNOC Gas.