Gulf stock markets rise after Trump pauses Iran attack

U.S. President Donald Trump said on Monday he had paused a planned attack on Iran after Tehran sent a new peace proposal, sparking a rally across Gulf equity markets in early trade on Tuesday [2].

Dubai’s benchmark index surged 1.4%, snapping a seven‑session losing streak as almost every listed company traded higher. Blue‑chip developer Emaar Properties rose 1.6% and Emirates NBD, the emirate’s largest lender, gained 2% [2]. Abu Abdahi’s index also climbed 0.9%, led by a 3.9% jump in Space42 and a 3.6% rise in Alpha Dhabi Holding. The port operator Abu Abdahi Ports added 1.4% after announcing a 300 million‑dirham ($81.7 million) acquisition of MBS Logistics and a collaboration with Borouge to explore a new export hub on the UAE’s east coast [2].

In Qatar, the benchmark index rebounded 0.5% with Estithmar Holding up 3.4% and dairy producer Baladna adding 2.8% [2]. Saudi Arabia’s index was largely unchanged; gains in developers Umm Al Qura for Development and retailer Savola Group (each +3%) were offset by declines in SABIC Agri‑Nutrients (‑2%) and Saudi Energy Co (‑1.1%) [2]. Oil prices fell nearly 2%, with Brent crude at $110.12 a barrel by 0628 GMT, easing concerns that a wider Middle East conflict could drive further price spikes [2].

The market lift reflects investors’ relief that the United States appears willing to give diplomacy a chance, reducing the risk of a broader regional war. Trump’s comment that there is a “very good chance” of reaching an agreement with Iran to prevent a nuclear breakout added to the optimism [2][3]. However, analysts warn that short‑term corrections remain possible as investors may take profits after the sharp rally [3].

If the diplomatic overture holds, Gulf equities could continue to benefit from lower geopolitical risk and stabilising oil prices. Yet the market’s next move hinges on whether Tehran’s proposal translates into a concrete deal, or if renewed hostilities resume, keeping investors on edge.