Dubai stock market rises on Iran conflict pause 

Dubai’s benchmark stock index rose nearly 7%, after the US and Iran agreed on a two-week conditional ceasefire in a conflict that has had profound socio-economic impacts on the region. 

The Dubai Financial Market General Index rose 6.91% or 373 points to close at 5777.47 on Wednesday. Real estate companies, banks and airlines reported the highest gains, with Dubai’s flagship develop Emaar rising 13%. Emirates NBD, the emirate’s largest bank by assets registered 10.67% in gains while Dubai Islamic Bank rose 6%. 

The Abu Dhabi Stock Exchange also registered modest gains of 2.84% on Wednesday, giving a much-needed respite to investors. 

Energy markets welcomed the pause, with WTI crude oil futures dipping more than 15% to below $93 per barrel on Wednesday. Brent crude oil futures tumbled more than 15% toward $91 per barrel, according to the Trading Economics website. 

The ceasefire is contingent on the reopening of the Strait of Hormuz, a vital waterway which facilitates the passing of substantial amounts of oil, gas and non-energy products. 

Arab countries could suffer staggering losses of up to $200 billion due to the Iran conflict, with the military escalation potentially wiping out between 3.7%-6% of the region’s collective gross domestic product (GDP).