Gulf Markets Surge Amid U.S.-Iran Ceasefire Hope

Gulf stock markets experienced a boost following a tentative U.S.-Iran ceasefire agreement. The reopening of the Strait of Hormuz calmed investor concerns over inflation, with notable market gains in Dubai and Abu Dhabi. Saudi Arabia, however, remained less affected by the conflict due to its alternative oil routes.

Gulf stock markets saw a significant upturn on Wednesday after the U.S. and Iran reached a fragile two-week ceasefire agreement. This deal, which allows the secure reopening of the Strait of Hormuz, has alleviated some investor anxiety over soaring inflation as it involves a critical passage for oil and gas transportation.

The tentative peace comes amid the ongoing U.S.-Israel conflict against Iran, which began in February with Tehran's effective blockade of the strait. U.S. President Donald Trump stated the ceasefire remains conditional on Iran halting its strait blockade, while Iran's Foreign Minister, Abbas Araqchi, pledged to halt counter-attacks if the aggression stopped.

The response has been positive, with notable spikes in markets across the Gulf. Dubai's main market experienced its largest intraday gain in over a decade, while Abu Dhabi's benchmark index reached a six-year high. Qatar's index experienced a 3.4% increase, driven by energy stocks. Despite this optimism, Saudi Arabia's stock market exhibited resilience throughout the conflict.

(With inputs from agencies.)