Gulf markets slip as Trump–Iran rhetoric undermines hopes of Strait of Hormuz deal

Stock markets across the Gulf ended lower on Sunday after renewed geopolitical tensions and comments from U.S. President Donald Trump and Iranian officials dampened expectations of a breakthrough on maritime security near the Strait of Hormuz.

U.S. President Donald Trump said he was running out of patience with Iran and had discussed with Chinese President Xi Jinping that Tehran should not obtain a nuclear weapon and must reopen the strategic waterway.

Iranian Foreign Minister Abbas Araqchi said Tehran had “no trust” in the United States and would only engage in negotiations if Washington demonstrated seriousness, reinforcing a hardened diplomatic stance.

The developments weighed on regional investor sentiment, with broad-based declines across Gulf equity markets.

Saudi Arabia’s benchmark index TASI fell 0.3 percent, extending losses for a fourth consecutive session. Materials, consumer discretionary and healthcare stocks led declines, with Saudi Arabian Mining Company dropping 2.3 percent and Saudi Basic Industries Corporation falling 2.5 percent.

In Qatar, the benchmark QSI eased 0.1 percent as most constituents traded lower, including Dukhan Bank down 0.7 percent and Mesaieed Petrochemical Holding Company declining 1.3 percent.

Outside the Gulf, Egypt’s benchmark EGX30 fell 1.5 percent, marking a fifth straight session of losses as nearly all constituents ended in negative territory. Commercial International Bank slipped 1.1 percent, while GB Corp dropped 5.8 percent after reporting a 30.4 percent decline in first-quarter consolidated net profit, citing higher finance costs, provisions and regional pressures.

Elsewhere in the region, Kuwait’s benchmark index fell 0.9 percent, Bahrain’s index declined 0.2 percent, and Oman’s benchmark slipped 0.3 percent, reflecting widespread risk-off sentiment across Middle Eastern equities amid geopolitical uncertainty linked to maritime security in the Strait of Hormuz.