Gulf stock markets close mixed after U.S. strikes on Iran’s Qeshm Island as Saudi Aramco gains on stronger quarterly earnings

Gulf stock markets ended mixed on Tuesday, November 3, as investors weighed renewed fears of military escalation following U.S. strikes on Iran’s Qeshm Island against hopes that regional diplomatic efforts could prevent a wider confrontation.

Saudi Arabia’s benchmark index slipped 0.1%, weighed down by a 0.8% decline in Saudi Telecom Company. However, shares of oil giant Saudi Aramco rose 0.2% after the company reported a 34.5% increase in third-quarter net profit.

Aramco’s earnings reached $36.25 billion, supported by higher revenue and income related to its exit from a joint venture. The company also said it was exploring additional export routes and overseas capacity as the regional conflict continued to disrupt oil production and shipping.

Qatar’s benchmark index recovered from earlier losses to close 0.2% higher, supported by a 0.6% gain in Qatar National Bank, the Gulf’s largest lender.

Dubai’s main index edged up 0.1%, helped by a 2.4% rise in Emaar Properties. Shares of Emaar Development surged 10.7% following reports that its parent company was considering an acquisition valued at as much as $3 billion.

Abu Dhabi’s benchmark declined 0.3%, while Egypt’s blue-chip index gained approximately 1.6%.

The mixed performance followed limited U.S. strikes on Iran’s Qeshm Island in the Strait of Hormuz. A U.S. official said the operation did not signal a resumption of large-scale combat, but the incident heightened concerns about further escalation.

Investors were also monitoring diplomatic contacts involving Iran and Saudi Arabia, alongside broader efforts to reduce regional tensions.

Daniel Takieddine, co-founder and CEO of Sky Links Capital Group, said geopolitical risks were limiting investors’ appetite for risk, while progress in mediation was helping contain losses. He warned that disruptions to shipping through key regional waterways remained a threat to markets.