Mideast Stocks: Most Gulf Markets Muted As Iran Tensions Keep Investors Wary

BENGALURU - Most Gulf stock markets were subdued in early trade on Tuesday as escalating U.S.-Iran tensions kept investors cautious, although higher oil prices supported energy shares in Saudi Arabia. U.S. President Donald Trump said on Monday that Iran should surrender to end the war with the United States, as talks between the two countries remained stalled. 

A senior Iranian official told Reuters that Tehran would shift to a "fully offensive" military posture. Oil prices settled more than $2 higher on Monday, as concerns over global supplies mounted amid investor pessimism over diplomatic efforts to resolve the conflict.

Dubai's benchmark index fell 0.3%, with most sectors in negative territory. Dubai Islamic Bank lost 0.8%, while Emirates Integrated Telecommunications, known as du, declined 2%.

Abu Dhabi's benchmark index slipped 0.3%, weighed down by health care, real estate and financial shares. Pure Health Holding fell 1.5% and Aldar Properties dropped 0.6%.

Abu Dhabi Ports, however, extended gains after surging 14.9% in the previous session — its largest one-day rise since September 2022 — and was up 3%. Sovereign wealth fund L'IMAD, which owns 75.42% of AD Ports through its wholly-owned subsidiary ADQ, launched a voluntary conditional cash offer for the remaining shares at 6.25 dirhams each, the company said in a statement on Monday.

Qatar's benchmark index edged down 0.2%, dragged by a 0.8% fall in Qatar National Bank and a 1.2% decline in Qatar Fuel. Industries Qatar, however, rose 1.6%. Ship crossings through the Strait of Hormuz remained in single digits on Monday, despite increasing slightly from the weekend, preliminary shipping data showed on Tuesday, as U.S.-Iran peace talks remained deadlocked.

Saudi Arabia's benchmark index rose 0.3%, supported by gains in materials, energy and financial stocks. SABIC Agri-Nutrients Co and Saudi Arabian Mining Co gained 3% and 1.6%, respectively, after signing a memorandum of understanding to explore opportunities across the fertilizers and integrated agri-nutrients value chain. Saudi Aramco added 0.6%. The company is offering crude outside the Strait of Hormuz to some Asian refiners through private negotiations, two sources with knowledge of the matter told Reuters.