Mideast Stocks: Most Gulf markets in red amid uncertainty over US-Iran peace talks

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Most Gulf stock markets ended lower on Tuesday as uncertainty over ⁠U.S.-Iran peace negotiationsweighed on risk sentiment. On Monday, U.S. President Donald ‌Trump said negotiations with Iran were still underway, despite an earlier report by Iran's Tasnim news agency claiming Tehran had suspended the indirect talks with Washington.

Trump also said on Monday that he had communicated with the Iran-backed Lebanese militia Hezbollah through intermediaries, and obtained assurances the group would attack Israel.

Dubai's main share ⁠index dropped 0.7%, with top lender Emirates NBD retreating 1.7%. In an interview with CNBC, Trump said he would not be concerned if the talks ended. However, he later said in a social media post that discussions were continuing. ‌

He also ⁠told ABC News that ⁠he expected an agreement to be reached within the next week. In Abu Dhabi, the index was down 0.3%.

The Qatari index lost ‌0.3%, with Qatar Islamic Bank falling 1.6%. Investors ⁠continue to monitor developments in the region closely, said Milad Azar, market analyst at XTB MENA.

Uncertainty over the status of diplomatic talks, coupled with ongoing geopolitical tensions, may continue to restrain risk appetite, he said, adding that the continued closure of the Strait of Hormuz could further weigh on market sentiment. However, expectations of progress toward a potential resolution may help limit downside risks and also channel a possible rebound, ‌according to Azar.

Saudi Arabia's benchmark index, however, edged ⁠0.1% higher, helped by a 2.2% rise in petrochemical maker Saudi Basic Industries Corp Brent crude futures were down $1.13, or 1.2%, at $93.85 a barrel at 1130 GMT.

Outside the Gulf, Egypt's blue-chip index edged 0.1%.