Gulf Markets Rise Amid Hopes for War Ceasefire and Shipping Risks
Gulf markets rose, supported by Aramco and Emirates NBD, despite risks in the Strait of Hormuz
Translated by Qiyas from الجريدة — Original source
Most Gulf stock exchanges closed higher on Wednesday, as investors weighed hopes for an end to the US-Israeli war on Iran against concerns over shipping risks in the Strait of Hormuz.
Investors are assessing the degree of de-escalation against maritime shipping risks, but recent attacks on tankers in the strait and on regional energy infrastructure have underscored the ongoing threat of renewed escalation.
The Saudi main index recovered earlier losses to close up 1.4%, supported by a 1.6% rise in shares of oil giant Saudi Aramco.
Raneem Tarafa, Head of Research and Market Analysis for the Middle East and North Africa at Takamol, said, “Most Gulf markets rose slightly as investors weighed ongoing security risks and progress in regional mediation efforts. Despite some progress, fears of renewed escalation remain.”
She added, “Persistent risks to energy flows along key shipping routes have kept investors cautious, with attention focused on tangible diplomatic progress.”
The main Dubai index rose 0.8%, buoyed by a 4.3% jump in shares of Emirates NBD, the emirate’s largest bank.
