Mideast Stocks: Most Gulf Markets Retreat on Dwindling Hopes for Quick End to Iran War

Most major stock markets in the Gulf fell on Tuesday on fading hopes for ​a deal to ⁠end the U.S.-Israeli war on Iran, amid sharp differences between Tehran and Washington ‌over a peace proposal. 

U.S. President Donald Trump said on Monday that a ceasefire with Iran was "on life ​support," citing disagreements over several demands, including a halt to hostilities on all fronts, the lifting ​of a ​U.S. naval blockade, the resumption of Iranian oil exports and compensation for war damage.

Tehran also stressed its sovereignty over the Strait of Hormuz, a key shipping ⁠route through which about a fifth of global oil and liquefied natural gas supplies pass.

Saudi Arabia's benchmark index declined 1.1%, dragged by a 1.6% fall in Al Rajhi Bank and an 8.9% plunge in ACWA Power.

However, oil major Saudi Aramco gained 0.6%.

Brent crude futures gained $3.44, ​or 3.3%, to $107.65 ‌a barrel by ⁠1315 GMT.

GCC stock ⁠markets remained under pressure after the U.S. president rejected Iran's latest proposal, fueling concerns over renewed ​regional tensions. Any escalation could weigh on investor sentiment and ‌dampen hopes for a swift resolution, said Milad Azar, ⁠market analyst at XTB MENA.

"Prolonged constraints in the Strait of Hormuz could continue to disrupt logistics and push oil prices higher."

Dubai's main share index dropped 0.6%, with top lender Emirates NBD losing 2.7% and blue-chip developer Emaar Properties  down 2.1%.

In Abu Dhabi, the index retreated 0.9%, hit by a 3% slide in ADNOC Gas following a drop in first-quarter profit.

The United Arab Emirates carried out military strikes on Iran, including an April attack on a refinery on Lavan Island, the Wall Street Journal reported on ‌Monday, citing people familiar with the matter.

The UAE has not publicly ⁠acknowledged the strikes, and Reuters could not immediately verify ​the report.

The Qatari index closed 1% lower, as most of its constituents were in negative territory.

Outside the Gulf, Egypt's blue-chip index finished 0.8% lower.

Saudi Arabia fell 1.1% to 11,039

 Abu Dhabi lost 0.9% to ​9,699

 Dubai dropped 0.6% to ‌5,783

 Qatar declined 1% to 10,524

 Egypt down 0.78% to 54,059

 Bahrain added 0.2% to 1,933

 Oman eased ⁠0.3% to 8,285

 Kuwait down 0.6% to 9,273