Gulf bourses closed mostly higher on Monday as US President Donald Trump's signal that fresh Iran strikes are unlikely, provided talks continue, lifted sentiment across the region after an eight-month conflict.
Trump's remarks came despite reports from the US military and Iranian state media that shipping had been attacked in or near the Strait of Hormuz, a vital waterway that carried nearly a fifth of the world's crude before the war.
Trump had earlier hinted at renewed attacks after last week's midterm elections, but no large-scale US military operation has followed, and Tehran has warned it would hit US and Israeli targets in response to any such move.
Saudi Arabia's benchmark index rose 0.9%, with Al Rajhi Bank gaining 1.9%, while Perfect Presentation For Commercial Services surged 4.3% following a rise in quarterly profit.
Meanwhile, Saudi authorities lifted an alert in Riyadh on Monday, a day after a Houthi attack damaged an Aramco office building in the city.
Dubai's main share index gained 1%, with blue-chip developer Emaar Properties advancing 2.4%.
In Abu Dhabi, the index was up 1%.
Shipping disruption in the Strait of Hormuz remains a drag, but resilient regional economic data is keeping investors buying, said Daniel Takieddine, Co-founder and CEO, Sky Links Capital Group.
Anwar Gargash, a senior Emirati official, warned on Monday that the region may face a long period of instability as a comprehensive political deal between Washington and Tehran looked hard to achieve.
"We should ... prepare for a long period of uncertainty in which neither a decisive resolution nor stable regional order can be taken for granted," Gargash said in an address to a geopolitical conference in Abu Dhabi, the United Arab Emirates capital.
The Qatari index was up 0.9%, led by a 1.5% rise in the Gulf's biggest lender, Qatar National Bank.
Outside the Gulf, Egypt's blue-chip index advanced 1.2%, with Telecom Egypt closing 3.3% higher.
However, Abu Qir Fertilizers fell 2.7%, and Misr Fertilizers Production slid 2.6%, extending the previous session's losses. Egypt has notified fertilizer producers of a further 33% cut to their gas supplies, according to a statement from Abu Qir and industry officials. The move reflects Cairo's push to reduce reliance on costly LNG imports, a shift that hits producers hard because gas is both their raw material and their fuel.
Saudi Arabia | <.TASI> rose 0.9% to 10,107 |
Abu Dhabi | <.FTFADGI> climbed 1% to 9,483 |
Dubai | <.DFMGI> increased 1% to 6,087 |
Qatar | <.QSI> gained 0.9% to 10,108 |
Egypt | <.EGX30> advanced 1.2% to 51,415 |
Bahrain | <.BAX> finished flat at 1,822 |
Oman | <.MSX30> eased 0.4% to 7,234 |
Kuwait | <.BKP> added 0.2% to 8,967 |
(Reuters)