Tadawul Shares End Week Subdued; US, Iran Sign Interim Peace Deal
The Tadawul All Share Index closed subdued at 0.06% in the green as the signing of the interim peace deal between Iran and the US took the global spotlight on Thursday.Dominating headlines is the signing of the US-Iran Islamabad Memorandum of Understanding. The 14-point deal includes sanction terminations, the reopening of the Strait of Hormuz, and a 60-day extension to its ceasefire to reach and negotiate a final deal.However, Israel's newest attacks on Lebanon caused market jitters as Iran stipulated that Lebanon should be included in its peace deal with the US."However, this sell off has partially reversed overnight following news shortly after the US close that the Presidents of the US and Iran had electronically signed an interim deal to end hostilities, with this MoU coming into effect. The signing had initially been expected on Friday, but Axios reported earlier yesterday that this may be brought forward. According to reports, the 14-point MoU foresees a rapid re-opening of the Strait of Hormuz, with an extendable 60-day period to negotiate a final deal that would cover nuclear issues and broad sanctions relief. The deal also envisages a $300bn fund for the 'reconstruction and economic development' of Iran, though Trump stressed yesterday that the US will not be investing in Iran and that Iran would benefit only if it 'behaves'," Deutsche Bank Research said in a note.In other news, and as expected, the US Federal Reserve kept its interest rates steady for the fourth time in a row, with the interest rates at the 3.50% to 3.75% range.Back at home, Saudi Arabian Oil Co. (SASE:2222), d/b/a Saudi Aramco, is reportedly looking into the sale of its sulphur business stake. The state-owned oil giant is said to be aiming to raise $7 billion from the sale. Shares of Aramco closed 0.30% lower.Meanwhile, Specialized Medical Co. (SASE:4019) ticked up 1.05% as its 51%-owned Al-Mukhtas Al-Sehhi Medical unit secured a contract to manage and operate the SABIC Behavioral Care Specialist hospital.
