SRMED
Englishعربي
Englishعربي
Gulf stock markets rose at the start of Monday’s trading as investors reacted to easing geopolitical tensions and hopes of a possible peace deal between the United States and Iran, according to Asharq Al-Awsat. The move followed renewed market focus on the Middle East after recent US strikes in Iran had briefly pushed oil prices higher and heightened uncertainty.
The rally came as traders appeared to price in a lower risk of wider conflict, which helped support shares across much of the Gulf region. According to the report, the gains were driven by receding geopolitical risks and optimism that talks could produce an agreement between Washington and Tehran. That expectation matters for Gulf economies because the region is closely tied to energy markets, trade flows and investor sentiment linked to stability in the Middle East.
Oil prices had moved in the opposite direction earlier, with Brent crude futures rising by more than 2 percent in Asian trading after the US military carried out strikes inside Iran, Asharq Al-Awsat reported. The immediate jump in crude reflected concern that fighting could disrupt supply routes or escalate further, a risk that typically supports oil and pressures regional markets in different ways.
At the same time, broader Asian markets also responded to the shifting tone. Japan’s Nikkei stock average surged past 65,000 for the first time on Monday, with The Japan Times reporting that the rally was fueled in part by expectations that economic uncertainty tied to the conflict in the Middle East could ease. The newspaper said comments by US President Donald Trump raised hopes that an agreement between the United States, Iran and other countries might be nearing finalization.
The mixed market reaction underscores how quickly financial markets are adjusting to developments in the region: oil prices tend to rise on conflict fears, while equities often gain when investors believe tensions may cool. For Gulf bourses, the key question now is whether diplomatic momentum continues and whether it is enough to offset the volatility triggered by the earlier US strikes.
What happens next will depend on whether the reported talks produce concrete progress. If investors become convinced that a deal is advancing, Gulf markets could continue to benefit from improved risk appetite; if the situation worsens, energy prices and regional stocks could swing again as traders reassess the outlook.