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GCC Stocks Drop on Geopolitical Pressure

GCC Stocks Drop on Geopolitical Pressure
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GCC Stocks Drop on Geopolitical Pressure

GCC Stocks Drop on Geopolitical Pressure

GCC stock markets dived on Monday trading amid increased geopolitical tension after Saudi and UAE oil tankers suffered “sabotage operations” near the Emirati territorial waters. They were also affected by the pressure of the US-China trade war.

The Saudi stock index dropped 3.55 percent, Abu Dhabi index 3.32 percent, Dubai Financial Market 3.97 percent and Kuwait Stock Exchange index 1.37 percent.

Saudi Arabia's benchmark index closed at 308.02 points lower at 8366.64 points on Monday, with trades worth more than SAR5.3 billion riyals ($1.4 billion).

More than 180 million shares were traded among more than 120,000 deals, with eight companies posting gains, while shares of 174 companies closed with decline.

The index of Saudi Nomu-Parallel Market closed Monday at 3424.31 points down 68.99 points and with tradings worth more than SAR2.5 million ($667 million).

The number of shares traded exceeded 140,000 among 134 deals.

In UAE, however, Dubai Financial Market index dropped by 3.97 percent, losing 104.29 points, to close at 2525.61 points.

Trading volume amounted to 231.1 million shares at a total value of AED300.1 million (about $82 million) after closing 4,599 deals for 36 shares.

In addition, eight sectors witnessed decline, headed by the goods sector by 7.49 percent, followed by real estate sector by 5.64 percent, investment sectors by 5.23 percent, insurance sector by 3.83 percent, banking sector by 3.49 percent, transport sector by 3.01 percent, services sector by 1.80 percent and communications sector by 0.98 percent.

The General index in Bahrain closed Monday at 1.416.15 points, down 11.56 points from the previous close, due to the decline in the indexes of commercial banks and investment, services and industrial sectors.

Bahrain Islamic Bank’s index closed at 758.79, down 19.52 points from its previous close.

Kuwait Stock Exchange ended its trading Monday with a decline in its general index by 59.5 points to reach the level of 5632.4 points, a 1.05 percent drop.

The total number of transactions of the index amounted to 125.9 million shares, through 5,826 transactions worth KD33.2 million (about $110 million).

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Oil Up as Market Watches US-China Trade Talks

FILE - Pumpjacks are seen before sunrise in Hobbs, N.M., Feb. 24, 2025. (AP Photo/Julio Cortez, File)
FILE - Pumpjacks are seen before sunrise in Hobbs, N.M., Feb. 24, 2025. (AP Photo/Julio Cortez, File)
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20
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Oil Up as Market Watches US-China Trade Talks

FILE - Pumpjacks are seen before sunrise in Hobbs, N.M., Feb. 24, 2025. (AP Photo/Julio Cortez, File)
FILE - Pumpjacks are seen before sunrise in Hobbs, N.M., Feb. 24, 2025. (AP Photo/Julio Cortez, File)

Oil prices climbed on Tuesday as investors awaited the outcome of US-China talks that could pave the way for easing trade tensions and improve fuel demand.

Brent crude futures rose 28 cents, or 0.4%, to $67.32 a barrel by 0330 GMT. US West Texas Intermediate crude was up 23 cents, or 0.4%, at $65.52.

On Monday, Brent had risen to $67.19, the highest since April 28, buoyed by the prospect of a US-China trade deal, Reuters said.

US-China trade talks were set to continue for a second day in London as top officials aimed to ease tensions that have expanded from tariffs to rare earth curbs, risking global supply chain disruptions and slower growth.

Prices have recovered as demand concerns have faded with the trade talks between Washington and Beijing and a favorable US jobs report, while there are risks to North American supply due to wildfires in Canada, Goldman Sachs analysts said.

US President Donald Trump said on Monday that the talks with China were going well and he was "only getting good reports" from his team in London.

A trade deal between the US and China could support the global economic outlook and boost demand for commodities including oil.

Elsewhere, Iran said it would soon hand a counter-proposal for a nuclear deal to the US in response to a US offer that Tehran deems "unacceptable", while Trump made clear that the two sides remained at odds over whether the country would be allowed to continue enriching uranium on Iranian soil.

Iran is the third-largest producer among members of the Organization of the Petroleum Exporting Countries and any easing of US sanctions on Iran would allow it to export more oil, weighing on global crude prices.

OPEC+, which pumps about half of the world's oil and includes OPEC members and allies such as Russia, is accelerating its plan to unwind its most recent layer of output cuts.

"The prospect of further hikes in OPEC supply continues to hang over the market," Daniel Hynes, senior commodity strategist at ANZ, said in a note.

"A permanent shift to a market driven strategy (in OPEC) would push the oil market into a sizeable surplus in H2 2025 and almost surely lead to lower oil prices."