Gulf Markets Are Mixed as Tensions Rise Between the US and Iran; Earnings Drive Investor Sentiment
Gulf markets exhibited a mixed performance as rising tensions between the US and Iran, along with second-quarter earnings, influenced investor sentiment throughout the region on Thursday.
Major Gulf stock markets exhibited a mixed performance on Thursday as investors assessed the rising tensions between the US and Iran alongside a new wave of second-quarter corporate earnings. Geopolitical risks and corporate results played a major part in market sentiment.
The US military announced on Wednesday that it conducted another series of strikes on Iran under the orders of President Donald Trump, marking the 12th consecutive night of American assaults.
Iran’s Islamic Revolutionary Guard Corps reported that an oil tanker ignited following an explosion while trying to navigate what it termed a mined route in the southern Strait of Hormuz, near the coast of Oman. The Guards noted that two additional tankers reversed course, raising alarms about the safety of one of the globe’s most vital energy shipping routes.
Investor concerns intensified following the announcement by the Iran-aligned Houthis on Thursday that they had targeted two Saudi oil tankers in the Bab el-Mandeb Strait, heightening fears of possible disruptions to another crucial global energy shipping route.
Saudi Arabia’s benchmark index fell by 0.1%, influenced by a 0.9% drop in Saudi National Bank, the largest lender in the kingdom. Shares of oil giant Saudi Aramco, on the other hand, increased by 0.5%.
Qatar’s main index declined by 0.3%, impacted by a 1.2% decrease in Industries Qatar.
Dubai’s benchmark index increased by 0.6%, driven by a 2.9% rise in Emirates NBD following the bank’s second-quarter profit report, which showed little change from the prior quarter. The bank reported that asset growth and margins continued to show resilience in its first full-quarter results since the onset of the Iran conflict.
In Abu Dhabi, the benchmark index rose by 0.7%, bolstered by a 4.1% increase in First Abu Dhabi Bank after the announcement of its quarterly earnings.
The lender reported a net profit of 5.72 billion dirhams ($1.56 billion) for the three months ending June 30, an increase from 5.51 billion dirhams during the same period the previous year.
