Gulf stock markets rise as investors closely watch US-Iran talks

Major stock markets across the Gulf region traded higher in early Wednesday sessions, supported by gains in banking and energy shares

Major stock markets across the Gulf region traded higher in early Wednesday sessions, supported by gains in banking and energy shares, although investor sentiment remained cautious amid uncertainty surrounding diplomatic efforts between the United States and Iran.

Market participants continued to closely watch developments in the ongoing negotiations, with concerns that any setback in the talks could reignite geopolitical tensions and affect regional financial markets.

According to reports, senior U.S. representatives, including President Donald Trump’s son-in-law Jared Kushner and special envoy Steve Witkoff, arrived in Doha on Tuesday for what the White House described as high-level discussions. Despite their presence in Qatar, Iranian officials and the Qatari government confirmed that the negotiations would be conducted indirectly through mediators rather than through face-to-face meetings.

Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani reiterated Doha’s commitment to facilitating dialogue between Washington and Tehran. Qatar’s Foreign Ministry said the country remains actively engaged in supporting all diplomatic channels established under the memorandum of understanding between the United States and Iran, reflecting its continued role as a regional mediator.

Saudi Arabia’s benchmark Tadawul index climbed 0.5% during early trading, led by strong performances in the banking sector. Shares of Saudi National Bank, the kingdom’s largest lender, advanced 1.3%, while energy giant Saudi Aramco gained 0.4%, providing additional support to the market.

Dubai’s financial market also posted gains, with its main index rising 0.4%. The increase was driven largely by blue-chip property developer Emaar Properties, whose shares advanced 1% as investors showed renewed confidence in the emirate’s real estate sector.

Abu Dhabi’s benchmark index edged 0.1% higher, extending the broader positive trend seen across regional markets.

Meanwhile, energy markets remained in focus as shipping activity through the Strait of Hormuz continued to recover. Tanker traffic along the strategically important waterway has reportedly returned to levels seen before the recent regional conflict, easing concerns over potential disruptions to global oil supplies.

The United Arab Emirates also reached a new milestone in June by recording its highest-ever crude oil and condensate exports, according to preliminary ship-tracking data. The increase comes just weeks after the country formally ended its nearly six-decade membership in OPEC, a move aimed at expanding production flexibility and maximizing the value of its energy resources outside the organization’s quota system.

In Qatar, the benchmark stock index fluctuated during the session before closing marginally higher by 0.1%, reflecting cautious investor trading as markets awaited further clarity on geopolitical developments and their potential impact on the regional economy.