Gulf stock markets surged on Wednesday as investors reacted with relief to the two-week ceasefire agreement between the United States and Iran. Major indices across the region saw significant gains, led by Dubai’s DFM General Index and Saudi Arabia’s Tadawul, as the immediate threat of military escalation in the Middle East receded.
The diplomatic breakthrough, which includes the reopening of the Strait of Hormuz, has restored confidence in regional trade and energy stability. While global oil prices stabilized following an initial sharp drop, the easing of geopolitical tensions provided a massive boost to banking and real estate equities in the UAE and Qatar. Analysts suggest that if the 10-point peace proposal progresses toward a long-term resolution, the region could see sustained capital inflows and improved market sentiment throughout the quarter.
