Stock markets across the Gulf ended Monday's trading session mostly higher as signs of easing geopolitical tensions boosted investor confidence and encouraged buying across regional exchanges.

Optimism spread through the markets after U.S. President Donald Trump indicated that Washington and Tehran had "largely negotiated" a framework aimed at ending the recent conflict and reopening the Strait of Hormuz — a crucial shipping route for global energy supplies.

The prospect of reduced tensions and smoother energy flows helped lift equities in the UAE, Bahrain, and Oman, while oil prices fell sharply as investors anticipated fewer supply disruptions.

Dubai Leads Regional Gains

Dubai emerged as one of the strongest performers of the day, with the benchmark Dubai Financial Market (DFM) index climbing 1.13%.

The rally was driven largely by gains in heavyweight stocks, particularly Emaar Properties, which rose 2.6%. Parking operator Parkin Company also delivered a solid performance, advancing 3.6%.

Investor buying was widespread, with strong interest seen across real estate, finance, logistics, and technology stocks.

Among the day's biggest winners was food delivery giant Talabat, whose shares jumped 12.7% to close at AED1.10. Construction company ALEC surged 8.9%, while insurance provider Salama gained 7.1%.

Other notable gainers included:

  • Amlak Finance, up 6.3%
  • Dubai Residential REIT, rising 6%
  • Tabreed, gaining 5.5%

The broad rally suggested that investors are becoming more comfortable taking on risk as geopolitical concerns begin to ease.

Abu Dhabi Advances as ADNOC Gas Gains

The Abu Dhabi Securities Exchange (ADX) also ended the day in positive territory, rising 0.45%.

Energy giant ADNOC Gas provided much of the momentum, with its shares climbing 2.4%. However, gains extended well beyond the energy sector as investors bought into financial, healthcare, and consumer stocks.

Top-performing stocks on the exchange included:

  • Chimera S&P Pakistan UCITS ETF, which rose 7.55% to AED11.40
  • Americana Restaurants International, up 6.49% to AED1.97
  • United Arab Bank, gaining 6.06% to AED1.40
  • Gulf Medical Projects Company, advancing 5.65% to AED2.43
  • KICO, rising 5.57% to AED5.50

The positive sentiment across sectors reflected growing confidence in the UAE's economic outlook and the region's ability to navigate global uncertainty.

Bahrain and Oman Extend Their Winning Streak

Elsewhere in the Gulf, markets in Bahrain and Oman also posted healthy gains.

The Bahrain All Share Index climbed 0.9%, while the Muscat Stock Exchange Index recorded an identical increase.

Investors in both markets appeared encouraged by the improving geopolitical outlook and expectations that reduced tensions could support economic activity and investor sentiment across the region.

Qatar Pulls Back After Recent Surge

Qatar was the only major Gulf market to close lower.

The benchmark index fell 1.1%, with profit-taking emerging after the market had rallied more than 3% in the previous session.

The decline was largely driven by weakness in Industries Qatar, whose shares slipped 2.7%.

Despite Monday's retreat, analysts note that Qatar's market fundamentals remain strong, supported by robust energy revenues and ongoing economic expansion.

Oil Prices Drop as Supply Concerns Ease

Global oil prices came under pressure as investors reacted to the possibility of a diplomatic breakthrough between the United States and Iran.

Brent crude futures fell sharply, declining by $6.01, or 5.8%, to settle at $97.53 per barrel.

The drop reflected expectations that a peace agreement could reduce risks to global oil supplies and allow normal shipping activity through the Strait of Hormuz.

Lower energy prices are generally viewed positively by equity markets, particularly for sectors such as transportation, retail, and manufacturing that benefit from reduced operating costs.

Egypt Slips While Saudi Arabia Remains Closed

Outside the Gulf region, Egypt's benchmark EGX30 index ended the session 0.4% lower.

Meanwhile, Saudi Arabia's stock market remained closed ahead of the Eid holiday, leaving investors awaiting the kingdom's return to trading later this week.

Investor Confidence Begins to Recover

Monday's gains across GCC markets highlight a noticeable improvement in investor sentiment after weeks of uncertainty.

Market participants are closely watching diplomatic developments between the United States and Iran, as any progress toward a lasting agreement could ease geopolitical risks and support further gains across regional equities.

At the same time, strong performances in sectors such as banking, real estate, healthcare, logistics, and technology indicate that Gulf markets continue to benefit from resilient economic fundamentals.

Outlook

While uncertainty remains, the latest trading session offered a reminder of how quickly sentiment can improve when geopolitical tensions ease.

Dubai and Abu Dhabi both posted solid gains, Bahrain and Oman extended their positive momentum, and investors returned to growth-oriented sectors as risk appetite improved.

If diplomatic progress continues and energy markets stabilize, GCC stock exchanges could remain well-positioned to attract renewed investor interest in the weeks ahead.