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UAE Stocks Slide on Renewed Iran-Israel Attacks; OPEC+ Boosts July Oil Output

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Stock trading in the United Arab Emirates started the week in red as renewed attacks between Iran and Israel soured sentiment and lifted oil prices.

At the close of Monday trading, the FTSE ADX General Index fell 1.354%, while the DFM General declined 0.571%.

Geopolitical tensions were in the spotlight once again after Iran and Israel exchanged new rounds of attacks, with US President Donald Trump telling both countries to stop shooting. Trump also said in a social media post that final peace talks are proceeding.

"This and the wider quotes from Mr Trump sound like a President who really doesn't want this war to escalate any further and is trying to find all ways to avoid it. Still, the events have further complicated the chances of an imminent deal. The key sticking points to a deal remain the release of Iran's frozen assets, its stock of highly enriched uranium, developments in Lebanon, and how control of the Strait of Hormuz will be handled going forward," Deutsche Bank Research said.

On the oil front, seven OPEC+ members, in a virtual meeting on Sunday, agreed to boost oil output targets by 188,000 barrels per day in July amid the continued closure of the Strait of Hormuz.

Back home and on the corporate front, Gulf Pharmaceutical Industries (ADX:JULPHAR), d/b/a Julphar, shares closed the session 2.80% in the red. The pharmaceutical company's Planet Pharmacies subsidiary concluded the sale of its Health First pharmacy chain in the UAE to Batha Healthcare Group and now awaits regulatory approvals to divest its Scientific Pharmacy chain and distribution channel in Oman.

Meanwhile, in Dubai, Alec Holdings (DFM:ALEC) unit Target Engineering Construction Co. secured three engineering, procurement, and construction contracts worth $500 million. Shares of the engineering and construction group closed the session 1.36% lower.

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