Gulf Stock Markets Rally After Trump-Brokered Iran-Israel Ceasefire

Stock markets across the Gulf surged in early trading on Tuesday following U.S. President Donald Trump’s announcement of a ceasefire agreement between Iran and Israel, easing fears of further regional escalation and boosting investor sentiment.

Trump’s announcement of a “complete and total” ceasefire, which he said would take effect within hours, raised hopes of an end to the 12-day conflict that had displaced millions and rattled global markets. The breakthrough triggered a swift rebound in risk appetite across the region.

Saudi Arabia’s benchmark Tadawul index led regional gains, rising 2.1% in morning trade. Key financial stocks were among the top performers, with Al Rajhi Bank gaining 1.9% and Saudi National Bank, the country’s largest lender, adding 2.1%.

Budget carrier Flynas, which recently listed on the exchange, surged over 7% to 79.80 riyals, continuing its strong post-IPO momentum. However, energy and industrial giants lagged behind, with Saudi Aramco falling 1.7% and SABIC Agri-Nutrients Company down 1.1%, reflecting weaker oil sentiment.

Oil prices slumped to their lowest levels in two weeks after the ceasefire news calmed fears of supply disruptions in the Middle East, a key oil-producing region. Brent crude futures were down $3.82, or 5.3%, at $67.66 per barrel by 06:45 GMT.

In the United Arab Emirates, Dubai’s main index posted a 3.1% gain, on track for its biggest single-day rise since mid-December. Real estate heavyweight Emaar Properties led the charge with a 4.7% jump, while Air Arabia soared 7.2% — potentially its sharpest daily gain in more than three years.

Abu Dhabi’s index also climbed 2.2%, bolstered by a strong 8.3% rally in Aldar Properties, one of the capital’s leading developers.

Qatar’s main index advanced more than 2%, with Qatar Islamic Bank up 2.2%. The country’s civil aviation authority confirmed the reopening of its airspace early Tuesday, after a brief closure triggered by an Iranian missile strike on a U.S. base in Qatar. The attack caused no casualties and appeared to be part of a symbolic retaliation.

The regional market rebound reflects growing optimism that tensions in the Middle East could ease in the near term. Israeli Prime Minister Benjamin Netanyahu confirmed that his government accepted Trump’s proposal, saying Israel had accomplished its goal of neutralizing Iran’s nuclear and missile capabilities.

With geopolitical risks temporarily abating, investors appeared to shift focus back to fundamentals and earnings prospects in the Gulf’s heavyweight financial, property, and travel sectors.