Mideast Stocks: Gulf shares rise on Iran deal hopes, firmer oil prices

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Gulf stock markets rebounded on Thursday, as expectations that the U.S. was nearing a deal with Iran to end the ⁠Middle East war and firmer oil prices lifted investor sentiment. Oil prices rose 2% after Reuters reported that ‌Iran's Supreme Leader Ayatollah Mojtaba Khamenei had issued a directive that the country's near-weapons-grade uranium should not be sent abroad.

Pakistan stepped up diplomatic efforts to accelerate U.S.-Iran peace talks, while Tehran said it was reviewing Washington's latest responses. U.S. President Donald Trump said he could wait a few days for the "right answers" from Iran, but was also prepared to resume attacks. Dubai's benchmark stock index rose 0.6%, recovering from the previous session's losses, with gains across all sectors. ⁠Emaar Properties added 1.1%, while budget carrier Air Arabia advanced 2.4%.

Dubai approved an additional 1.5 billion dirhams ($408.5 million) in economic incentives, bringing total support announced over the past two months to 2.5 billion dirhams, the emirate's crown prince said on X.

The Abu Dhabi benchmark index gained 0.4%, led by utilities and technology stocks. Abu Dhabi Islamic Bank rose 1.2%, while ADNOC Logistics ‌and ADNOC Gas added ⁠1.1% and 0.6%, respectively. ADNOC's ⁠chief executive said the state oil giant remained committed to its $150 billion five-year capital expenditure programme to expand operations, support growth and meet global energy demand.

The Qatari benchmark index rose 0.6%, with Estithmar ‌Holding jumping 2.3% after a report that it had tapped Rothschild for ⁠a potential IPO of its healthcare unit. QatarEnergy-linked Industries Qatar and Mesaieed Petrochemical gained 0.8% and 1.8%, respectively.

QatarEnergy said on Wednesday it had acquired interests in three offshore exploration blocks in Uruguay from a Shell subsidiary, marking its first entry into the country's upstream sector.

Saudi Arabia's benchmark stock index climbed 0.4%, with Saudi National Bank up 2.2%. Kingdom Holding surged 8.3%, its biggest intraday percentage gain in more than a year, after saying the Four Seasons Resort and Residences Red Sea on Shura Island had started welcoming guests.

The Omani benchmark index snapped a nine-session losing streak, surging 5.4% as all constituents advanced. OQ Exploration and Production rose 6.8%, while ‌Bank Nizwa jumped 9.4%. "Despite the recent declines, the market remains on a ⁠strong uptrend and could continue to appeal to investors looking to buy the dip in a resilient economy," said George Pavel, general manager at Naga.com Middle East.

Outside the Gulf, Egypt's blue-chip index rose 0.3%, helped by an 8.3% gain in Orascom Development and a 1.5% rise in Fawry for Banking Technology.