Gulf markets slip as US-Iran talks fail to show progress

Most stock markets in the Gulf ended lower on Sunday as investor caution intensified following a lack of progress in indirect peace talks between Iran and the United States, which concluded without a breakthrough in Doha earlier this week.dawn+1

Stalled Talks Weigh on Sentiment

Saudi Arabia's Tadawul All Share Index fell 28.01 points, or 0.26 percent, to close at 10,798.97, with 153 stocks declining against 103 advancing, according to Arab News. The MSCI Tadawul Index also lost 0.18 percent.arabnews

The declines came after Iran and the United States wrapped up a round of indirect talks in Doha on Wednesday with no sign of headway toward a lasting peace agreement, according to Reuters. Negotiators spent two days discussing maritime traffic in the Strait of Hormuz and the unfreezing of Iranian assets — issues that both sides said had already been resolved when an interim agreement was announced in mid-June.reuters

Qatar's Foreign Ministry said the discussions produced "positive progress" on matters related to the memorandum that halted the war in June, but sources familiar with the negotiations said the nuclear program did not come up and the talks were technical in nature.detroitnews+1

A Contrast With Earlier Optimism

The cautious mood in the Gulf stands in sharp contrast to the euphoria that swept global markets in mid-June when President Donald Trump announced a deal with Iran on Truth Social, declaring "Ships of the World, start your engines." That announcement sent the S&P 500 and Nasdaq Composite sharply higher, while oil prices plunged as investors anticipated the resumption of shipping through the Strait of Hormuz.aljazeera+1

A subsequent summit in Switzerland on June 22 produced a "roadmap" toward a final deal within 60 days, with mediators Pakistan and Qatar brokering agreements on communication channels and a deconfliction cell for Lebanon.aljazeera

Uncertainty Persists

Despite the framework, the path to a lasting peace remains unclear. Iran has insisted on the complete withdrawal of Israeli troops from Lebanon as a condition for a final agreement, while the United States seeks commitments on Tehran's nuclear program — an issue that has yet to feature in the technical negotiations. Oil prices have already fallen sharply from wartime highs, with Brent crude dropping roughly 21 percent in June alone amid expectations of restored supply, according to CNBC.cnn+2

The lack of concrete progress in Doha has left Gulf investors uncertain whether the 60-day window for a final deal will produce results or merely extend the limbo that has characterized markets since the interim agreement took effect in June.