Trading floors across the Gulf opened to a cautious hum on Wednesday, screens flickering red as nerves over U.S.–Iran diplomacy resurfaced. The region’s main indices slipped, with Dubai absorbing the sharpest blow.
The unease followed fresh signals from Washington. President Donald Trump said he was weighing the deployment of a second aircraft carrier to the Middle East, even as preparations continue for renewed talks with Tehran aimed at preventing another flashpoint. He added that Iran would be “foolish” not to pursue a deal on its nuclear and missile programs — a remark that underscored both the possibility of compromise and the risk of confrontation.
In Riyadh, the benchmark index fell 0.6%, dragged lower by a 1.2% decline in Saudi National Bank, the kingdom’s largest lender. Financial heavyweights elsewhere mirrored the caution.
Dubai’s main index slid 1%, pressured heavily by a 7.5% tumble in Dubai Islamic Bank after the Sharia-compliant lender reported a drop in annual profit. The selloff made it the session’s standout laggard, amplifying broader market anxieties.
Abu Dhabi’s index edged down 0.3%, while Qatar’s market eased 0.2%, with telecom operator Ooredoo retreating 2.3%.
The geopolitical backdrop remains the market’s central preoccupation. Any U.S. military move against Iran is widely seen as a spark that could ignite retaliation across the region. In January, Saudi Arabia, Qatar, Oman and Egypt had already urged Washington to avoid such escalation.
On Wednesday, Qatar’s Emir Sheikh Tamim bin Hamad al-Thani and President Trump spoke by phone, discussing efforts to calm tensions and safeguard regional stability — a reminder that diplomacy, for now, is still in motion.
For investors, however, the day’s trade suggested that until clarity replaces conjecture, caution will continue to dictate the Gulf’s market rhythm.
