Mideast Stocks: Dubai leads Gulf stocks higher on hopes of de-escalation in Iran war

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Gulf stock markets ended higher on Wednesday amid hopes of a de-escalation in the Iran conflict, with Dubai leading ⁠gains as its 1 billion dirham ($272.3 million) support package came into effect.

U.S. President Donald ‌Trump said on Tuesday that Washington could end its military campaign within two to three weeks and that Tehran is not required to reach a deal to stop the conflict, signaling most clearly his intent to bring the month-long war to a close.

Dubai's main stock index advanced 2%, led by a 5.6% surge in blue-chip developer Emaar Properties and a 4.7% jump in top lender Emirates NBD. Dubai ⁠approved 1 billion dirhams ($272.26 million) in economic support measures for the business sector, effective immediately for a period of three to six months, the crown prince said on X on Monday.

GCC equity markets advanced as hopes of a de-escalation in Middle East tensions helped restore some stability. If these expectations are realized, ‌the recovery could ⁠become more sustained over ⁠the medium term, said Milad Azar, a market analyst at XTB MENA.

Support from the Dubai government's new package could ease economic pressures and support growth, providing further boost to ‌the market, Azar said. "Additionally, the UAE continues to benefit from ⁠resilient fundamentals."

In Abu Dhabi, the index gained 1.4%, with Aldar Properties closing 0.9% higher. The Qatari benchmark index rose 0.8%, with petrochemicals maker Industries Qatar finishing 3.9% higher.

Meanwhile, an Iranian cruise missile struck an oil tanker leased by state-owned QatarEnergy in Qatari waters on Wednesday, . Saudi Arabia's benchmark index added 0.2%, helped by a 1.2% gain in Saudi National Bank, the country's biggest lender by assets, and a 0.6% rise in oil giant Saudi Aramco.

In Saudi Arabia, the market has stabilized after a steady recovery this month, with still-elevated oil prices continuing to support sentiment, ‌said Azar.

Oil, however,reversed earlier gains on Wednesday as uncertainty over the situation ⁠in the Middle East continued to unnerve markets.

Outside the Gulf, Egypt's blue-chip index leapt more than 3%, as most of its constituents were in positive territory including Commercial International Bank, which gained 3.1%.