Gulf markets jump sharply after Washington-Tehran cease-fire announcement

Gulf markets witnessed a sharp wave of rises on Wednesday, following the announcement of a two-week ceasefire agreement with Iran, in a move that constitutes a temporary breakthrough in one of the region's most tense geopolitical crises.

Immediate reaction in GCC stock exchanges

The Saudi market opened trading up nearly 2%, amid investors' optimism that conditions in the Strait of Hormuz, a vital artery for global energy trade, could calm down.

In Qatar, the bourse jumped by  about 4% at the beginning of the session, driven by a broad buying wave that included most sectors, while the UAE markets recorded remarkable gains, as the Dubai market rose by more than 6%, and the Abu Dhabi market achieved an increase of more than 3.5%.

Kuwait, on the other hand, recorded its indices with the largest collective rise since September 2025, a clear reflection of the optimism that prevailed following the US announcement.

Geopolitical breakthrough

Analysts see the collective jump as reflecting the sensitivity of Gulf markets to security developments in the Strait of Hormuz, as investors view the temporary ceasefire as a breathtaking opportunity after weeks of tension that has strained trade and energy.

This relative calm is expected to open the door to improved investment liquidity and a gradual return of confidence to regional markets, especially in the oil, energy, and maritime sectors.