Gulf Markets Weaken on Falling Oil Prices Amid U.S. Rate Cut Hopes

DUBAI – Gulf stock markets were subdued in early Monday trading following a decline in oil prices, although expectations of a potential U.S. rate cut in September prevented deeper losses. Crude prices fell as the prospect of a Gaza ceasefire reduced geopolitical tensions and investors monitored Tropical Storm Beryl’s potential impact on U.S. energy supplies. Saudi Arabia’s benchmark index fell 0.2%, with significant declines in Al Taiseer Group and ACWA Power Co. Saudi Aramco remained flat amidst volatile trading. The Qatari index dropped 0.1%, and Abu Dhabi’s index decreased by 0.3%, impacted by Qatar National Bank’s fall. Conversely, Dubai’s main share index edged up 0.2%, bolstered by a rise in Emirates NBD. Despite fewer listings, the sale of high-value homes in Dubai remained steady, supported by international demand. Meanwhile, weaker U.S. job growth strengthened the case for a rate cut by the Federal Reserve, influencing monetary policy across the Gulf Cooperation Council (GCC), where currencies are typically pegged to the U.S. dollar.