Gulf stocks slide ahead of Trump’s Iran deal deadline

Major Gulf stock markets traded cautiously on April 7 as investors awaited a deadline set by US President Donald Trump for Iran to reopen ‌the Strait of Hormuz to all shipping, Reuters reports.

The region’s markets have remained jittery since late February, when the US-Israel conflict with Iran began, leading Tehran to effectively close the strait, a vital route for global oil shipments, raising concerns over rising inflation.

Investors had hoped diplomatic efforts could resolve the standoff, but talks have yet to produce any tangible results. Trump set the cut-off for a potential agreement at 20:00 Eastern Time on April 7 (00:00 GMT on April 6). 

Iran stated on April 6 that it sought a lasting end to the war with the United States and Israel but resisted pressure to reopen the strait, while Trump cautioned that the country could be "taken out" if it did not meet the deadline.

The ongoing uncertainty has fueled a risk-averse mood among investors, keeping the US dollar firm and pushing oil prices sharply higher on April 7.

Saudi Arabia’s benchmark index fell 0.5%, led by a 0.2% drop in Al Rajhi Bank and a 1.6% decline in Saudi Basic Industries Corp. 

Dubai’s main share index slipped 0.3%, with blue-chip developer ⁠Emaar Properties down 2.3%. In Abu Dhabi, the index eased 0.3%. 

Meanwhile, Qatar’s index inched up 0.1%, supported by a 0.8% rise in Qatar Islamic Bank.

By Jeyhun Aghazada