High Oil Prices Not Enough to Save Stocks

In Kuwait, the rise in oil prices did not translate into gains for the stock market during Thursday’s session, as all major indices closed in the red, signaling that financial markets are factoring in broader variables beyond crude oil movements alone. The General Market Index fell by 65.67 points, or 0.75%, to close at 8,713.71 points, amid trading volume of 236.8 million shares across 20,679 transactions valued at 74.5 million dinars. Meanwhile, the Main Market Index declined by 134.95 points, or 1.48%, to 8,959.69 points, with 146 million shares traded in 12,842 deals worth 30.2 million dinars. Market activity reveals that global uncertainty continues to weigh on investor appetite, even as oil prices remain elevated, with markets closely monitoring the trajectory of the war, supply dynamics, and developments in negotiations, alongside the impact of energy prices on inflation, interest rates, and global growth. The global landscape is thus caught between two opposing forces: oil prices are rising due to supply risks, while equities face pressure from heightened uncertainty and an unclear near-term outlook. In the Gulf, oil prices remain a key driver of revenues, but financial market performance will continue to hinge on supply and maritime route stability, the course of the war and diplomatic talks, and global liquidity trends.