Most stock markets in the Gulf extended their gains on Wednesday, buoyed by a ceasefire between Israel and Iran that has helped reduce geopolitical tensions and encouraged a return to riskier assets.
The ceasefire, brokered by U.S. President Donald Trump, appeared to be holding a day after both countries signaled an end to their recent air conflict.
In Saudi Arabia, the benchmark TASI index edged up 0.1% in volatile trade, supported by a 1% rise in Saudi National Bank, the kingdom’s largest lender by assets.
George Pavel, General Manager at Naga.com Middle East, said the recent rally was driven by a decline in geopolitical risks, prompting renewed investor interest.
Oil prices also rebounded slightly after early-week losses, as markets weighed the durability of the ceasefire and received a boost from U.S. demand data. Expectations that the Federal Reserve could soon cut interest rates also lent support, especially given that most Gulf currencies are pegged to the U.S. dollar.
In Dubai, the main share index gained 0.4%, led by a 1.3% rise in Emirates NBD, the emirate’s top bank. Abu Dhabi’s index closed up 0.2%, while Qatar’s index rose 1.1%, driven by a 1.8% gain in Qatar National Bank, the region’s largest lender.
Outside the Gulf, Egypt’s EGX30 climbed 1.2%, reaching its highest level since March 2024. The rally was supported by a 1.3% increase in Commercial International Bank. The Egyptian prime minister announced that gas supplies to factories—recently suspended due to regional tensions—would resume on Friday, according to a cabinet statement.
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