Emirati Indices Close Lower as US-Iran Hormuz Deal Optimism Fades
Stock trading in the United Arab Emirates ended in the red again on Tuesday as optimism for a US-Iran deal to reopen the Strait of Hormuz dimmed, sparking concerns of prolonged supply disruptions.At the close of trading, the FTSE ADX General Index shed 0.763%, while the DFM General Index lost 0.359%.US President Donald Trump said in a post on the Truth Social platform that he is demanding Iran pay compensation for people killed in war and protests and that the condition would be put "firmly" into all future negotiations. Trump's statement came after Iran asked the US for war damages to reopen the Hormuz waterway."By this point, you'd think markets would be largely immune to headlines about a US-Iran deal. The pattern keeps repeating - initial enthusiasm when negotiations appear promising, only for that optimism to dissipate just as quickly. Yet the oil market remains very headline-driven, which leaves prices whipsawing," ING said. "Current rhetoric suggests any potential deal is still some way off, meaning risks remain skewed to the upside for oil prices."Back home and on the corporate front, Adnoc Logistics & Services (ADX:ADNOCLS) gained 3.61% and was the Abu Dhabi bourse's most traded stock by value at closing. The energy maritime logistics company reported a higher first-half attributable profit of $1.12 billion, driven by strong growth in its shipping segment and improved operating leverage.Over in Dubai, National Central Cooling (DFM:TABREED), d/b/a Tabreed's, attributable profit for the first six months declined due to higher financing costs and additional interest expenses related to acquisition-related debt. Its shares closed the season 0.41% lower.On the economic calendar is the release of the July consumer price index report on Wednesday. The data, released by the US Bureau of Labor Statistics, provide investors with insights into the US Federal Reserve's next interest rate move.
