Most major Gulf stock markets moved higher on Wednesday as investors responded cautiously to signs of progress in U.S.-Iran negotiations, while uncertainty over the durability of a potential agreement continued to weigh on sentiment.
Markets gained after Washington and Tehran concluded an initial round of talks in Switzerland on Monday, raising hopes of progress towards ending the conflict.
However, investors remained cautious after the two sides offered conflicting accounts of key elements of the framework agreement, including potential financial incentives for Iran, arrangements around the Strait of Hormuz and the wider regional security situation.
U.S. President Donald Trump said on Tuesday that Iran had agreed to nuclear inspections “into infinity”, but Tehran denied making such a commitment, raising questions over the stability of the emerging deal.
Saudi Arabia’s benchmark index rose 0.3 percent in early trading, supported by gains in real estate-related stocks.
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Umm Al Qura for Development and Construction Co surged 10 percent, while Jabal Omar Development Co climbed 5.3 percent.
The gains came after Saudi Arabia’s real estate authority announced it had begun accepting applications from foreigners seeking to own property in the kingdom, part of broader efforts to attract international investment.
The move is linked to Saudi Arabia’s wider economic diversification agenda under its Vision 2030 strategy, which aims to expand investment beyond oil and strengthen sectors including tourism, property and infrastructure.
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Dubai’s main share index gained 0.1 percent, helped by a 1.2 percent rise in toll road operator Salik Company.
In Abu Dhabi, the benchmark index advanced 0.3 percent, while Qatar’s stock market was largely unchanged in volatile trading.
Investors across the region continued monitoring developments around the Strait of Hormuz, a critical global energy route through which a significant share of the world’s oil shipments passes.
Oman and Iran agreed on Tuesday to continue discussions on the future management of navigation through the strategic waterway.
The issue has attracted international attention amid concerns over shipping security and potential disruptions to global energy supplies.
U.S. Secretary of State Marco Rubio warned that any attempt by Iran to impose transit fees on ships passing through the Strait of Hormuz would violate international law.
Analysts said Gulf markets remained supported by expectations that easing regional tensions could improve investor confidence, but unresolved political and security issues were limiting stronger gains.
The mixed signals from U.S.-Iran talks have left investors balancing hopes of reduced geopolitical risks against concerns that disagreements could undermine the fragile diplomatic process.
With energy markets, trade routes and regional economies closely linked to developments in the Middle East, investors are expected to continue watching negotiations and policy signals closely.
