Mideast Stocks: Most Gulf Stocks Gain As Investors Weigh US-Iran Mediation Hopes

Most Gulf stock markets ended higher on Tuesday, as investors weighed reports of U.S.-Iran mediation against fresh attacks and Houthi threats to impose a naval blockade on Saudi Arabia.

Dubai's main share index rose 0.3%, with blue-chip developer Emaar Properties gaining 0.9% and toll operator Salik rising 1.6%. 

In Abu Dhabi, the index was up 0.4%. Tensions in the region continue to weigh on investor sentiment, with military operations and disruptions in the Strait of Hormuz driving concerns, said George Pavel, general manager at Naga.com Middle East. Still, reports of efforts to revive U.S.-Iran diplomacy could boost hopes for a ceasefire, which may improve conditions for local economies and stock markets, Pavel said.

 Saudi Arabia's benchmark index fell 0.4%, hit by a 1.8% slide in Al Rajhi Bank, while Alinma Bank tumbled 4.4%, after posting lackluster second-quarter earnings and slashing its dividend. 

Yemen's Iran-aligned Houthis threatened a naval blockade of Saudi Arabia, risking a wider conflict and greater disruption to energy supplies and trade. The move came even as Tehran and Washington signalled interest in renewed diplomacy, with Iran saying mediators had presented new proposals but giving no details.

 Shipping companies should not load or discharge cargo at Saudi Arabian ports and such activity may result in being targeted "in any location" by Yemen's Iran-aligned Houthi militia, according to an email sent to companies by the Houthis. 

The Qatari index closed 0.2% higher, with Qatar Islamic Bank gaining 0.6%. 

Outside the Gulf, Egypt's blue-chip index advanced 1.6%. 

Saudi Arabia fell 0.4% to 10,699 

Abu Dhabi gained 0.4% to 9,785 

Dubai added 0.3% to 5,812 

Qatar was up 0.2% to 10,107 

Egypt advanced 1.6% to 53,990 

Bahrain was up 0.1% to 1,967

 Oman lost 0.9% to 7,091

 Kuwait eased 0.1% to 9,040

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