Abu Dhabi, Dubai Stocks Blink Red; Oil Prices Fall as US Eases Iran Sanctions
Markets in the United Arab Emirates ended lower on Tuesday as the FTSE ADX General Index shed 0.11%, while the DFM General Index lost 1.269%.Oil prices dropped after the US issued a 60-day sanctions waiver to allow the export of Iranian oil. The lifting of sanctions is one of Iran's demands in the memorandum of understanding signed with the US to reach a final deal."Looking ahead, the key uncertainty remains how quickly oil flows through the Strait of Hormuz can normalise. Obviously, this depends on how quickly upstream oil production in the Persian Gulf can return," ING said. "Clearly, the evolution of US-Iran talks will be crucial to how quickly energy flows resume. As we've seen in recent days, the ceasefire remains fragile. There's a very real risk of a further flare-up in tensions."As of 3:27 pm UAE time, the Brent crude oil futures stood at nearly $77.906 per barrel, up 0.01% from the previous day.Zooming in at home, Abu Dhabi's Department of Health and French biopharmaceutical company Sanofi signed a memorandum of understanding to evaluate the development of a vaccine innovation center in Abu Dhabi in a bid to bolster vaccine discovery capabilities, messenger ribonucleic acid research, and clinical development and manufacturing.Over to corporates, Burjeel Holdings (ADX:BURJEEL) launched its $1.50 billion trust certificate issuance program on the London stock exchange through its special purpose vehicle Burjeel Sukuk. Shares of the Emirati medical group closed the session 0.86% lower.Meanwhile, in Dubai, shares of International Financial Advisors (DFM:IFA) ended 0.17% in the green as it canceled its ordinary general assembly scheduled on June 29 due to the withdrawal of certain candidates and decided to restart a one-month nomination process.
