Live updates: Follow the latest news on US-Iran war
Stocks in the UAE led the second day of gains in the Gulf on hopes that Washington and Tehran can reach an agreement on a 15-point proposal to end the war.
Dubai’s benchmark DFM General Index surged 4.3 per cent at 12.27pm UAE time, adding to Monday's 1.63 per cent gain.
Property and banking stocks supported the index surge, with Emaar Properties, the biggest developer in the emirate by market capitalisation, advancing 5.5 per cent. Its unit Emaar Development climbed 3.27 per cent, while developer Deyaar rose 2.5 per cent.
Dubai’s top bank, Emirates NBD, surged more than 5.8 per cent, while Dubai Islamic Bank, the biggest Sharia-compliant lender in the UAE, advanced 3.7 per cent.
In Abu Dhabi, the equities benchmark also rose 2 per cent, helped by a 6.4 per cent rise in First Abu Dhabi Bank and a 6 per cent jump in Abu Dhabi Commercial Bank.
Aldar Properties, the top developer in the UAE capital by market capitalisation, also advanced 4.76 per cent, followed by RAK Properties, which climbed 4.5 per cent.
“Middle East headlines continue to drive markets, and there is a notable effort from the US – and its president – to ease tensions,” said Ipek Ozkardeskaya, analyst at Swissquote Bank.
“Nothing has been confirmed – to my knowledge – from the Iranian side. What is clear, however, is that [US President Donald] Trump wants this war to end. Whether he can make that happen remains to be seen.”
Mixed Messaging
The two-day rally in Gulf stocks, which have suffered since the beginning of the war on February 28, follows Mr Trump’s surprise announcement of a pause in strikes on Iran’s power and energy infrastructure on Monday.
On Tuesday, Mr Trump said Iran wanted a deal and had agreed not to pursue a nuclear weapon. But while he said the two countries are “currently in negotiations”, Iran has denied taking part in any talks.
Mr Trump this week said that the US and Iran have reached 15 points of agreement developed during “productive conversations”. Israel's Channel 12 and The New York Times said US envoys Jared Kushner and Steve Witkoff have shaped a process involving “the declaration of a month-long ceasefire period, during which the sides would negotiate a 15-point agreement”.
However, an Iranian military spokesman countered by saying the US is negotiating with itself.
“Has the level of your inner struggle reached the stage of you negotiating with yourself?” state media quoted Ebrahim Zolfaqari, the spokesman for the unified command of Iran's armed forces, in a taunt to the US leadership.
“People like us can never get along with people like you,” he added.
Mr Zolfaqari said US investments and prewar energy prices would not return as long as Washington does not recognise that regional stability is guaranteed by Iranian armed forces.
Rest of the Gulf
The main gauge of Saudi Arabia rose more than 1.21 per cent, helped by banking stocks, with the kingdom's largest bank by assets, Saudi National Bank, adding 2.36 per cent. Alinma Bank also rose more than 3 per cent.
Shares in Qatar advanced with the benchmark in Doha rising 1 per cent.
Kuwait's main index rose 0.26 per cent amid thin trade volumes. The main stock gauge in Muscat advanced 1.8 per cent, while shares in Bahrain remained mostly unchanged.
