Mideast Stocks: Most Gulf Markets Fall As Regional Risks Escalate; Saudi Flat on Supply-Reassurance Reports

Most Gulf markets fell on Wednesday as escalating regional risks kept investors cautious, while Saudi Arabia's bourse was flat as reports of additional crude cargoes via Oman eased fears of wider Middle East supply disruptions. 

Saudi Arabia's benchmark index finished flat, with oil major Saudi Aramco gaining 0.6%. The kingdom is offering additional crude cargoes to Asian refiners through ship-to-ship transfers off Oman's Sohar port, after drone attacks damaged a key pipeline linking its oil fields to the Red Sea, according to people familiar with the matter. The number of vessel transits through the Strait of Hormuz remained in the single digits, with four ships recorded on Tuesday versus seven a day earlier, according to preliminary shipping data released on Wednesday.

 Meanwhile, Umm Al Qura for Development and Construction rose 2.5% after the developer said it had sold a plot of land for 168.9 million riyals ($45.0 million). Qatar's benchmark index declined 1.4%, with all constituents in negative territory including Qatar Islamic Bank , which was down 2.4%. In Abu Dhabi, the index edged down 0.2%. Persistent regional uncertainty, maritime incidents, and stalled diplomatic talks continue to weigh on market sentiment. 

Investors are closely monitoring for tangible signs of diplomatic progress, including a rescheduled date for the Gulf states' meeting with Iran, said Joseph Dahrieh, managing director at Tickmill.

 "Low shipping traffic and maritime disruptions sustained caution." Dubai's benchmark index rose 0.7%, with most sectors advancing. Blue-chip developer Emaar Properties gained 3.4% after its board approved a one-time special dividend of AED 4.4 billion ($1.2 billion), or AED 0.50 per share. 

The Federal Reserve's two-day policy meeting concludes later on Wednesday, when the U.S. central bank is expected to announce its latest interest rate decision. Traders have priced in a 94.5% probability of a rate hike, according to CME's FedWatch Tool, compared with 33.1% a month earlier. Gulf markets typically track changes in U.S. monetary policy expectations because most regional currencies are pegged to the dollar. 

Outside the Gulf, Egypt's blue-chip index lost 0.2%. 

Saudi Arabia was flat at 10,780

 Abu Dhabi eased 0.1% to 10,114

 Dubai dropped 0.2% to 10,114

 Qatar declined 1.4% to 9,638 

Egypt down 0.2% to 54,823

 Bahrain was flat at 1,930

 Oman declined 0.9% to 7,550

 Kuwait lost 0.1% to 9,284