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Gulf stock markets ended mixed on Thursday after Israel and Lebanon agreed to implement a ceasefire, fueling optimism about a broader deal to end the U.S.-Iran conflict, although regional tensions persisted.
The Israel-Lebanon ceasefire is contingent on a complete cessation of fire from the Iran-aligned Hezbollah militia and the evacuation of all its operatives from the South Litani Sector, a joint statement released by the U.S. State Department said following negotiations in Washington.
U.S. President Donald Trump suggested on Wednesday that there could be progress in negotiations with Iran as soon as this weekend. Earlier, Iran struck Kuwait, damaging its airport and injuring dozens, while the U.S. military carried out strikes near the Strait of Hormuz.
Markets stayed cautious as attention returned to developments involving Iran and the Strait of Hormuz after a period of easing tensions and perceived progress in negotiations, said Ahmad Assiri, research strategist at Pepperstone. Saudi Arabia's benchmark index eased 0.1%, hit by a 0.5% fall in Saudi National Bank, the country's biggest lender by assets, and a 0.4% decrease in oil major Saudi Aramco.
Brent futures were down $3.05, or 3.1%, at $94.76 a barrel at 1224 GMT. Shares of Saudi Arabia's Kingdom Holding Company retreated 5%. The stock recently jumped as investor enthusiasm grew over its stake in Elon Musk's soon-to-be-listed SpaceX .
Dubai's main share index gained 0.6%, with blue-chip developer Emaar Properties. In Abu Dhabi, the index finished flat. The Qatari index fell 0.6%, with the Gulf's biggest lender Qatar National Bank losing 1.1%. Outside the Gulf, Egypt's blue-chip index was up 0.2%.
- Saudi Arabia eased 0.1% to 10,990
- Abu Dhabi was flat at 9,585
- Dubai rose 0.6% to 5,718
- Qatar dropped 0.7% to 10,336
- Egypt was up 0.2% to 52,653
- Bahrain eased 0.1% to 1,982
- Oman down 0.2% to 7,657
- Kuwait added 0.3% to 9,224
(Reporting by Ateeq Shariff in Bengaluru; Editing by Harikrishnan Nair and Vijay Kishore)
