Caution crept across the Gulf’s trading floors on Monday morning, with investors choosing restraint over risk as fresh U.S.–Iran negotiations loom.
A second round of talks between Washington and Tehran is scheduled in Geneva this week, reviving a long-running diplomatic effort centered on Iran’s nuclear programme. The renewed dialogue is meant to cool tensions that have periodically rattled the region — and by extension, its markets.
Signals from Tehran suggest a willingness to strike a deal that could unlock economic opportunities, from energy and mining projects to potential aircraft purchases. But optimism is tempered by reports that the U.S. military is preparing contingency plans should President Donald Trump opt for a harder line. The prospect of escalation — however distant — has injected a layer of uncertainty into regional sentiment.
Oil, the lifeblood of Gulf economies, offered little direction. Prices hovered near flat as traders balanced diplomatic headlines with the likelihood that OPEC+ may move ahead with production increases from April. With crude steady rather than surging, equity markets lacked a catalyst.
In Riyadh, the benchmark index slipped 0.3%, pressured in part by a 0.6% dip in heavyweight Saudi Aramco.
Dubai mirrored the mood, its main index easing 0.3%. Property bellwether Emaar Properties fell 1.8%, dragging on the broader market.
In neighboring Abu Dhabi, stocks edged down 0.2%.
Meanwhile, Qatar’s index shed 0.1%, weighed by a 1.7% decline in petrochemicals producer Industries Qatar.
For now, Gulf investors appear content to watch from the sidelines. Diplomacy may be back on the table — but until clarity emerges, conviction remains scarce.
