Gulf Stock Markets Tick Higher as Oil Prices Rise on Supply Concerns
Most major stock markets in the Gulf opened higher on Tuesday, riding the tailwinds of a mild uptick in oil prices. Investors responded positively to supply constraints and geopolitical developments, which collectively bolstered sentiment in energy-linked economies.
Oil Price Catalysts: OPEC+ and Canadian Wildfires
Brent crude futures climbed 0.19% to $64.75 a barrel by 0627 GMT, offering support to Gulf markets that rely heavily on oil revenues. The rise came after OPEC+ announced a lower-than-expected supply hike, tightening global output forecasts.
Meanwhile, wildfires in Alberta, Canada, have led to temporary shutdowns in oil and gas production. Reuters estimated the disruption has impacted nearly 7% of Canada’s total oil output, adding upward pressure on global crude prices.
Market Highlights: Dubai, Abu Dhabi, and Qatar Lead
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Dubai’s main share index rose 0.40%, marking its second straight session of gains. The standout performer was Amlak Finance, surging 14.29%.
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Abu Dhabi’s benchmark index rebounded, set to end a two-session losing streak. First Abu Dhabi Bank, the country’s largest lender, gained 1.15% in early trading.
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Qatar’s stock index was up 0.61%, buoyed by a 2.15% gain in Qatar Gas Transport and a 1.86% rise in Industries Qatar, a major player in the consumer goods and industrial sectors.
Saudi Arabia Trades Flat Amid Mixed Earnings
Saudi Arabia’s Tadawul index was largely unchanged, reflecting a balance of opposing forces:
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Tadawul Group fell 1.30%, pressuring the broader market.
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Buruj Cooperative Insurance climbed 2.56%, offering some upside.
The flat performance reflects investor hesitation amid uncertain geopolitical signals and mixed earnings outlooks.
Global Context: Iran, Trade Tensions, and U.S. Markets
Geopolitical undercurrents also shaped market behavior:
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Iran’s expected rejection of a U.S. nuclear proposal threatens to keep sanctions in place, limiting Iranian oil supply and supporting crude prices.
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Trade tensions remain unresolved. While a conversation between President Trump and Chinese leader Xi Jinping is anticipated this week, markets are cautious after Trump accused China of backtracking on tariff rollbacks.
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U.S. stock futures pointed downward, with Nasdaq and S&P 500 futures both dropping more than 0.3%, signaling weaker risk sentiment globally.
Outlook: Oil-Driven Momentum, But Caution Ahead
As oil continues to influence Gulf equities, market direction will likely hinge on:
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Clarity from OPEC+ on supply dynamics.
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Progress in U.S.-Iran nuclear negotiations.
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U.S.-China trade policy announcements.
While the short-term sentiment is buoyed by oil strength, underlying tariff and geopolitical uncertainties could introduce volatility in the sessions ahead.