Gulf equities mixed as investors await clarity on US-Iran talks

Gulf stock markets closed mixed on Monday as investors awaited clarity on reports of U.S.-Iran ceasefire talks that came after U.S. President Donald Trump warned Tehran of “hell” unless the Strait of Hormuz was reopened.

Trump warned in an expletive-laden Easter Sunday social media post that he would order strikes on Iran’s power plants and bridges on Tuesday if the strategic waterway was not reopened.

The United States and Iran have received the framework of a plan to end hostilities, but Tehran rejected an immediate reopening of the Strait of Hormuz after President Donald Trump threatened to rain “hell” on Iran if it failed to reach a deal by the end of Tuesday.

Brent crude futures inched 36 cents lower, or 0.33%, to $108.67 a barrel at 1222 GMT.

Saudi Arabia’s benchmark index eased 0.1%, hit by a 0.7% fall in the country’s biggest lender by assets Saudi National Bank.

Elsewhere, oil major Saudi Aramco fell 0.2%.

GCC markets posted mixed performances as geopolitical uncertainty kept investors on the sidelines. In the near term, trading is likely to remain cautious and highly responsive to headlines surrounding regional tensions, said Joseph Dahrieh, Managing Director at Tickmill.

Dubai’s main share index dropped 0.7%, weighed down by a 3% slide in Emaar Properties .

In Abu Dhabi, the index gained 0.3%.

According to Dahrieh, emerging hopes of a potential de-escalation could underpin sentiment and provide a stabilizing effect.

UAE official Anwar Gargash said any settlement of the U.S.-Iran war must guarantee passage through the Strait of Hormuz. Gargash warned that any deal that does not restrain Iran’s nuclear programme and its missile and drone arsenal would pave the way for “a more dangerous, more volatile Middle East.”

The UAE was hit harder than any other Gulf state, according to regional officials, following Tehran’s retaliation for U.S.-Israeli strikes with missiles and drones that targeted Israeli and U.S. bases and key Gulf infrastructure in the region.

The Qatari benchmark advanced 1.8%, buoyed by a 1.6% rise in the Gulf’s biggest lender Qatar National Bank .

Meanwhile, two vessels carrying liquefied natural gas (LNG) from Ras Laffan, Qatar, turned back after moving east toward the Strait of Hormuz, ship-tracking data showed on Monday.

Qatar, the world’s second-largest exporter of LNG, directs most of its shipments to Asia. Iranian attacks, however, knocked out 17% of export capacity, with 12.8 million tonnes per year expected to remain offline for three to five years.

Outside the Gulf, Egypt’s blue-chip index gained 0.8%.