UAE stock markets fall as the deadlock in U.S.-Iran talks weighs on markets

Stock markets in the United Arab Emirates closed lower on Friday, as the deadlock in negotiations between the United States and Iran continued to dampen risk appetite and unsettle energy markets, as Reuters reports.

Dubai’s main index (.DFMGI) fell for the fourth consecutive session, closing 0.5 percent lower, with almost all stocks in negative territory. Emirates NBD, Dubai’s largest lender, fell 1.9 percent, while toll operator Salik dropped 2.7 percent.

In Abu Dhabi, the index (.FTFADGI) retreated 0.3 percent for the seventh consecutive session, dragged down by basic materials and consumer discretionary stocks.

“Markets remain under pressure,” said Daniel Takieddine, chief executive of Sky Links Capital Group, citing “geopolitical uncertainty and the stalled U.S.-Iran talks”. According to him, reports of a U.S. military build-up could weigh on investor sentiment and extinguish hopes for a ceasefire, especially as shipping disruptions continue in the Strait of Hormuz.

The Wall Street Journal reported that the U.S. is sending a third aircraft carrier and up to 10,000 additional troops to the Middle East, while President Donald Trump considers resuming attacks on Iran after the November midterm elections.

On the other hand, Iranian President Masoud Pezeshkian said on Thursday that Tehran “will not shy away from” dialogue with Washington, while it considers the U.S. response to his latest proposal for reviving the collapsed Gulf ceasefire.

For the week, the Abu Dhabi index lost 2.2 percent and Dubai’s fell 1.3 percent, according to LSEG data.