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Tadawul Shares End Monday Lower; Catrion Catering Ticks Up

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The Tadawul All Share Index ended trading lower at 0.16% in the red as the re-escalation of the US-Iran conflict over the weekend dampened investor sentiment on Monday.

The US and Iran again launched missile and drone attacks against each other. The Middle Eastern country targeted Bahrain- and Kuwait-based US military facilities, while the US hit Iran's air defense systems, coastal radar sites, and other targets.

The renewed attacks raised concerns regarding the future of shipping traffic in the Strait of Hormuz as Iran said that it was closed. US President Donald Trump, however, said that the Strait of Hormuz was accessible to commercial traffic.

"It was another weekend of the US and Iran exchanging strikes. Clearly, the risk is that this escalates to levels seen early in the war, where neighbouring countries and their energy infrastructure are also targeted. Iran claims that the Strait of Hormuz is shut until further notice. The US pushed back, saying that it will ensure freedom of navigation. Escalation has slowed vessels transiting the strait to a trickle, renewing concerns over oil supply tightness through the third quarter," ING said in a note.

Back at home, Hamad Mohammed Bin Saedan Real Estate Co.'s (SASE:9648) board recommended a lower year-over-year dividend of 0.25 Saudi riyal per share for 2025. Shares of the real estate company closed 0.12% lower.

Catrion Catering (SASE:6004), meanwhile, ticked up 1.89% as it entered into a three-year contract to deliver inflight catering services to the Saudi Arabian Airlines Corp.

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The Tadawul All Share Index closed trading at 0.10% in the green as the latest geopolitical updates of the US-Iran conflict took the global spotlight on Sunday.Iran and the US launched back-and-forth strikes against each other in Gulf states. The missile and drone attacks resulted in Iran closing the Strait of Hormuz again."Asian stocks rose sharply on Friday, led by chip and AI firms as investors brushed off concern over the stalled recovery of energy supplies through the critical Strait of Hormuz, with tit-for-tat attacks escalating between the U.S. and Iran. The renewed back-and-forth attacks have further eroded the fragile three-week-old ceasefire, bringing the spotlight back on oil prices and what they could mean for inflation and the global rates outlook," United Securities LLC said in a note.Looking ahead, the economic calendar will see the release of the US' June inflation print on Tuesday, with Saudi Arabia following suit on Wednesday.Back at home and on the corporate front, Knowledge Economic City Co. (SASE:4310) shares ticked up 1.11% as it signed a nonbinding term sheet to create a closed-ended private real estate investment fund for the Multaqa Almadinah project's Multaqa Hospitality Cluster 1.Meanwhile, Umm Al Qura for Development and Construction Co. (SASE:4325) entered into reservation deals with Watheeq Real Estate Opportunities Second Fund for the sale of three land plots in Makkah. Shares of the real estate developer closed 2.02% higher.

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Update: US Equity Indexes Rise as Diplomatic Engagements Between Washington, Iran Send Crude Oil Lower

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US Equity Indexes Mixed This Week as Investors Chase Growth After Washington Strikes Aim to Free Hormuz From Iran's Control

US equity indexes traded mixed this week as growth sectors lifted the Nasdaq Composite and S&P 500 after Washington struck Iran to keep the Strait of Hormuz out of the Islamic Republic's control.The S&P 500 closed at 7,575.39 on Friday, versus 7,483.24 a week ago. The Nasdaq Composite stood at about 26,281.61, compared with 25,832.67 a week earlier. The Dow Jones Industrial Average ended at 52,637.01, versus 52,900.07 at the end of last week.* Technology, consumer cyclicals, and communication services were among the top five sectors. Industrials, materials, and health care led the decliners.* Five Magnificent-7 stocks rose this week, led by Meta Platforms (META). SK Hynix (SKHY, SKHYV) surged following the listing of its American depositary shares on the Nasdaq.* US Central Command struck 170 Iranian military targets over two nights after Tehran attacked three commercial ships transiting the Strait. Iran attacked US military sites in Bahrain, Kuwait, and Qatar. "If Iran tries to close the Strait down, there's going to be a response [from] the American military. That's the deal," US Vice President JD Vance said.* "Iran has come through the negotiations with (arguably) a great deal," according to a Macquarie note. "We would be surprised if they overplay a good hand and test Pres. Trump's patience and restraint for minimal remaining gain."* "The question confronting traders is whether Iran is willing to return to large-scale kinetic war with the US and its allies if necessary to strengthen its claim of control over the Strait of Hormuz, something that it has apparently not been granted by way of any diplomatic negotiations so far," a separate Macquarie note said.* The US is still committed to finding a diplomatic solution with Iran, an American official told Bloomberg on Thursday. The official described the ongoing discussions with Tehran as technical talks. West Texas Intermediate crude oil futures fell on Friday to $71.62, retreating from an intra-week high.

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