Slim gains for Gulf bourses capped by lack of progress to end Iran war

Gulf bourses finished Wednesday with modest advances, though the gains came mainly from isolated moves in single stocks, according to Business Recorder. Expectations of a settlement in the Iran war dimmed after an Iranian source said through Reuters that the two capitals had held no talks on extending the ceasefire. Iran also viewed the current agreement as lacking defined dates.

Oil prices rose as hopes for an early resolution of the conflict receded, with Brent crude futures up 1.4% at $88.91 per barrel and U.S. crude 1.3% higher at $83.20. Mohsen Rezaei, Iran's top security official, said traffic through Hormuz will stay blocked unless Washington meets Tehran's conditions, including the release of frozen assets. Shipping data showed only six vessels passed the waterway on Monday, compared with about 11 a day over the prior ten-day period.

Saudi Arabian Mining Co rose 1.5% and Emaar Properties gained 1.4%, helping lift the Saudi and Dubai indices, while Saudi Basic Industries Corp fell 3.1% as it traded ex-dividend. Houthi forces struck a Saudi vessel loaded with military gear at Bab el-Mandeb, according to their Saba news agency. According to Daniel Takieddine of Sky Links Capital Group, the region's assets are expected to react to news from Hormuz, with calm potentially lifting risk appetite and fresh disruption adding pressure.