Most Gulf markets gain on Iran-Israel truce
June 25 (Reuters) - Most stock markets in the Gulf edged higher on Wednesday, extending gains from previous sessions when they rose sharply following a ceasefire between Israel and Iran.
The ceasefire brokered by U.S. President Donald Trump appeared to be holding on Wednesday, a day after both countries signalled that their air conflict had ended, at least for now.
Saudi Arabia's benchmark index (.TASI), opens new tab added 0.1% in choppy trade, helped by a 1% rise in Saudi National Bank (1180.SE), opens new tab, the country's biggest lender by assets.
The recent rally was fuelled by reduced geopolitical tensions following the ceasefire, which encouraged investors to return to riskier assets, said George Pavel General Manager at Naga.com Middle East.
Oil prices recovered a little after sliding earlier this week, as investors assessed the stability of the ceasefire, while support also came from data that showed U.S. demand was relatively strong.
Traders and analysts also saw some support from market expectations that the Federal Reserve could soon cut U.S. interest rates.
The Fed's decision affects monetary policy in the Gulf where most currencies, including the Saudi riyal, are pegged to the U.S. dollar.
Dubai's main share index (.DFMGI), opens new tab added 0.4%, led by a 1.3% rise in top lender Emirates NBD (ENBD.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab finished 0.2% higher.
The Qatari index (.QSI), opens new tab advanced 1.1%, boosted by a 1.8% gain in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab climbed 1.2%, hitting its highest since March 2024, with Commercial International Bank (COMI.CA), opens new tab closing 1.3% higher.
Egypt's prime minister said gas supplies would resume to factories on Friday after being halted in recent days because tensions in the Middle East led to a shortage, a cabinet statement said on Wednesday.
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