Major Gulf bourses subdued on Israel-Iran conflict
Major stock markets in the Gulf were subdued in early trade on Tuesday with investors cautious as fighting between Iran and Israel entered its fifth day, sparking fears of potential regional instability.
Iranian media reported explosions and heavy air defence fire in Tehran.
In Israel, air raid sirens sounded in Tel Aviv in response to Iranian missiles.
US President Donald Trump, returning early from the G7 summit in Canada on Monday night, urged Iranians to evacuate Tehran, citing the country's rejection of a deal to curb nuclear weapons development.
Saudi Arabia's benchmark index traded flat, a day after posting a 1.3% gain. ACWA Power Company declined 3.7% and oil giant Saudi Aramco was down 0.4%.
Gulf markets rebound amid Israel-Iran conflict
The Qatari index inched 0.1% higher, helped by a 0.2% gain in petrochemical maker Industries Qatar.
Investors are also watching for details from the US Federal Reserve meeting scheduled to start later in the day, with a decision expected on Wednesday.
The Fed is expected to hold rates steady but the focus yet again will be on the path its Chair Jerome Powell charts out for future rate cuts.
Traders are currently pricing in two cuts by this year-end.
In Abu Dhabi, the index was up 0.1% in a choppy trade. Dubai's main share index added 0.1%, with blue-chip developer Emaar Properties putting on 1.2%.
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Express Tribune
37 minutes ago
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Trump seeks 'real end' to nuclear standoff with Iran
US President Donald Trump speaks as Israeli Prime Minister Benjamin Netanyahu waves following a meeting in the White House, in Washington, US, April 7, 2025. PHOTO: REUTERS Listen to article US President Donald Trump said he wanted a "real end" to the nuclear dispute with Iran and indicated he may send senior American officials to meet with the Islamic Republic as the Israel-Iran air war raged for a fifth day. Israeli Defence Minister Israel Katz said meanwhile that Iran's Supreme Leader Ayatollah Ali Khamenei could face the same fate as Iraqi President Saddam Hussein, who was toppled in a US-led invasion and eventually hanged after a trial. "I warn the Iranian dictator against continuing to commit war crimes and fire missiles at Israeli citizens," Katz told top Israeli military officials. Shortly after, Iran's state media reported an explosion was heard in Tehran. Speaking to reporters after his departure from Canada, where he attended the Group of Seven nations summit on Monday, Trump predicted that Israel would not be easing its attacks on Iran. "You're going to find out over the next two days. You're going to find out. Nobody's slowed up so far," he said. Trump said he might send US Middle East Envoy Steve Witkoff or Vice President JD Vance to meet with Iran. Washington has said Trump is still aiming for a nuclear deal with Iran, even as the military confrontation unfolds. Trump, who left the summit early due to the Middle East situation, said his departure had "nothing to do with" working on a deal between Israel and Iran after French President Emmanuel Macron said the U.S. had initiated a ceasefire proposal. Something "much bigger" than that was expected, he said on his Truth Social platform late on Monday. Khamenei has seen his main military and security advisers killed by Israeli air strikes, leaving major holes in his inner circle and raising the risk of strategic errors, according to five people familiar with his decision-making process. One of those sources, who regularly attends meetings with Khamenei, described the risk of miscalculation to Iran on issues of defence and internal stability as "extremely dangerous". Regional influence weakens Israel's military said Iran's military leadership is "on the run" and that it had killed Iran's wartime chief of staff Ali Shadmani overnight four days into his job after replacing another top commander killed in the strikes. Khamenei, who was imprisoned before the 1979 revolution and maimed by a bomb attack before becoming leader in 1989, is profoundly committed to maintaining Iran's Islamic system of government and is deeply mistrustful of the West. Ever since the Tehran-backed Hamas attacked Israel on October 7, 2023 and triggered the Gaza war, Khamenei's regional influence has been weakening as Israel has pounded Iran's proxies - from Hamas in Gaza to Hezbollah in Lebanon, the Houthis in Yemen and militias in Iraq. And Iran's close ally, Syria's autocratic president Bashar al-Assad, has been ousted. Israeli Prime Minister Benjamin Netanyahu has stressed that he will not back down until Iran's nuclear development is disabled. Before Israel launched its biggest attack ever on Iran, the UN's nuclear watchdog the International Atomic Energy Agency (IAEA) declared Iran in breach of its non-proliferation obligations for the first time in almost 20 years. Katz said the Iranian nuclear facility at Fordow, where an enrichment site is dug into a mountain, is an issue that will "of course" be addressed. The IAEA said on Tuesday it has identified additional elements that indicate direct impacts on the underground enrichment halls at the Natanz facility, and that there was no change to report at the Fordow and Isfahan sites. Iran's Revolutionary Guards said they had hit Israel's Military Intelligence Directorate and spy agency Mossad's operational centre early on Tuesday. There was no Israeli confirmation of such attacks. Top Iranians commander killed Israel launched its air war after saying it concluded Iran was on the verge of developing a nuclear weapon. Its surprise attack has killed nearly the entire top echelon of Iran's military commanders and its leading nuclear scientists. It says it now has control of Iranian airspace and intends to escalate the campaign in the coming days. Iran has so far fired 400 ballistics missiles and hundreds of drones towards Israel, said an Israeli military official. Trump has consistently said the Israeli assault could end quickly if Iran agreed to US demands that it accept strict curbs on its nuclear programme. Iran denies seeking nuclear weapons and has pointed to its right to nuclear technology for peaceful purposes, including enrichment, as a party to the Nuclear Non-Proliferation Treaty. Israel, which is not a party to the NPT, is the only country in the Middle East widely believed to have nuclear weapons. Israel does not deny or confirm that. Three people were killed and four injured in Iran's central city of Kashan in an Israeli attack, Iran's Nournews reported. Iranian officials have reported 224 deaths, mostly civilians, while Israel said 24 civilians had been killed. Israeli Finance Minister Bezalel Smotrich said nearly 3,000 Israelis had been evacuated due to damage from Iranian strikes. Israel's military said some 24 people were killed and more than 647 were injured in Iranian attacks - with 35 missiles penetrating the defence shield and making direct hits. World oil markets are on high alert for any strikes on Iran's energy infrastructure or elsewhere in the region that could hit global supply. Two oil tankers collided and caught fire on Tuesday near the Strait of Hormuz, where electronic interference has surged during conflict between Iran and Israel, but there were no injuries to crew or spillage reported. About a fifth of the world's total oil consumption passes through the waterway. Qatar's foreign ministry spokesman said Israel's "uncalculated" attack on Iran's South Pars gas field, where production was temporarily suspended on Saturday after a fire erupted in a strike, is worrying "everyone" about supplies. Iran shares the field, the world's biggest, with Qatar. The spokesman said production was steady.
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Pakistan, UAE urge restraint amid Israel-Iran tensions in high-level call
Deputy Prime Minister and Foreign Minister, Senator Mohammad Ishaq Dar, received a telephone call from his UAE counterpart, Sheikh Abdullah bin Zayed Al Nahyan, on Tuesday, as regional tensions soared following Israel's military strikes against Iran, according to Radio Pakistan. The two leaders exchanged views on the rapidly evolving Middle East crisis, emphasizing the grave risks of further escalation. Xi says China 'deeply worried' about Israel-Iran conflict, urges de-escalation They expressed deep concern over the escalating tensions and underscored the urgent need to support efforts for ensuring regional peace and stability. In a related development, China on Tuesday accused President Donald Trump of 'pouring oil' on the mounting conflict between Iran and Israel, after the US leader warned Tehran residents to 'immediately evacuate'. Following decades of enmity and a prolonged shadow war, Israel launched a surprise aerial campaign last week against targets across Iran, saying it aimed to prevent its arch-foe from acquiring atomic weapons – an ambition Tehran denies.
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KSE-100 closes over 250 points lower as late-selling erases intra-day gains
The Pakistan Stock Exchange (PSX) witnessed volatile trading on Tuesday, with its benchmark KSE-100 Index swaying in both directions before closing the day lower by 254 points. The KSE-100 started the session positive, hitting an intra-day high of 122,891.61. However, the second-half witnessed selling pressure that pushed the index to an intra-day low of 121,815.39. At close, the benchmark index settled at 121,971.04, down by 254.32 points or 0.21%. 'Amid growing geopolitical uncertainty surrounding tensions between Iran and Israel, investors opted to stay cautious, leading to a lack of clear direction throughout the session. Sentiment remained fragile as the market struggled to find firm footing,' brokerage house Topline Securities said in its post-market report. On the upside, index-heavyweights UBL, HBL, SYS, and OGDC provided some support, jointly contributing 219 points. However, losses in PKGP, LUCK, ENGROH, and HUBC offset those gains, dragging the index down by a combined 291 points, Topline said. In line with market expectations, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) decided to keep the policy rate unchanged at 11%. The MPC noted that the increase in inflation in May to 3.5% year-on-year (y/y) was in line with its expectation, whereas core inflation declined marginally. The PSX concluded Monday's trading session with a mixed performance across its indices, reflecting a nuanced market sentiment. While the benchmark KSE-100 Index managed a modest gain, broader market activity indicated a tug-of-war between bullish and bearish forces. The KSE-100 Index registered a fractional gain of 81.79 points, or 0.07%, to close at 122,225.36 points. Internationally, US stock futures slipped and oil prices rose on Tuesday, as investors were rattled by U.S. President Donald Trump's call for everyone to evacuate Tehran with the fifth-day of Israel-Iran fighting sowing fears of a broader regional conflict. Markets were on edge after a separate report said that Trump had asked for the national security council to be prepared in the situation room as he cut short his visit to the Group of Seven summit in Canada. Trump had earlier urged everyone to immediately evacuate Tehran, and reiterated that Iran should have signed a nuclear deal with the United States. The latest developments sparked a wave of risk-off moves in early Asian trading. S&P 500 futures fell 0.46%, European futures slumped 0.69%, while crude prices, briefly jumped more than 2%. Wall Street had closed higher on Monday after sources told Reuters that Iran was seeking a Trump-mediated immediate ceasefire with Israel, which also cooled a rally in crude prices. The Iran-Israel air war - the biggest battle ever between the two longtime enemies - escalated on Monday with Israel targeting Iran's state broadcaster and uranium enrichment facilities. The heightened uncertainty and fluid Middle East situation bolstered investor moves towards traditional safe-haven assets such as gold which rose 0.5%, while a rise in U.S. Treasuries pushed yields lower across the curve. The yield on the benchmark 10-year note was down about 2 basis points at 4.43%. The dollar firmed against the euro, yen and sterling as it reprised its role as a safe asset even as it held to broadly tighter ranges. MSCI's broadest index of Asia-Pacific shares outside Japan was a tad higher, while futures tracking Hong Kong's Hang Seng index were also marginally higher.
