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UAE Stocks Return to Trading After Eid Holidays; Oil Prices Rise Over US-Iran Deal Uncertainty

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Markets in the United Arab Emirates ended the first trading day back from the Eid holidays on both sides of the spectrum as investors remained cautious amid uncertainty surrounding a peace deal between the US and Iran.

At the close of Monday trading, the FTSE ADX General Index lost 0.53%, while the DFM General Index was up 0.303%.

Oil prices climbed on Monday after Iran's Islamic Revolutionary Guard Corps targeted an unnamed air base used by the US for an attack on southern Iran. The attacks follow the US Central Command's "self-defense" strikes over the weekend on Iranian air defenses, a ground control station, and two drones that posed threats to ships moving through regional waters.

"We've never felt closer to a deal but potentially never felt closer to it all falling apart with isolated strikes becoming more frequent including some again over the weekend. It's hard to imagine remaining in limbo for much longer given that if the Strait of Hormuz remains closed into mid-summer it will at some point likely lead to a non-linear tipping point of economic stress," Deutsche Bank Research said. "For now, it seems Mr Trump is still deciding on whether the current negotiations between the two nations satisfy his demands. He has been surprisingly quiet over the weekend which indicates things perhaps coming close to a head."

As of 3:40 pm UAE time, the Brent crude oil futures stood at nearly $93.578 per barrel, up 2.70% from the previous day.

Back home and on the corporate side, Emirates Telecommunications Group Co. (ADX:EAND), d/b/a e&, agreed to divest its 12.50% stake in Careem Technologies to Uber Technologies for $100 million. Shares of the telecommunications company closed the session 0.11% lower.

Elsewhere, Dubai Taxi (DFM:DTC) partnered with AJ Industries to expand its mobility services and explore new business models in Ajman. The taxi services company's stocks ended the session flat.

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