Tadawul Equities Close Tuesday Muted; Aramco, Ma'aden to Form Mining JV
The Tadawul All Share Index closed subdued on Tuesday at 0.03% in the green as market watchers keep watch on the US-Iran developments in their peace deal.US President Donald Trump expressed no interest in renewing the 60-day memorandum of understanding signed with Iran in June and also threatened military action against Oman if it intervenes in its efforts to reopen the Strait of Hormuz.Reuters reported Monday, citing a senior Iranian official, that Iran will shift to a "fully offensive" military stance as diplomatic efforts to finalize a deal with the US stalled. The media outlet also cited Iranian negotiator Mohammad Baqer Qalibaf on Tuesday, saying that Iran will keep the Strait of Hormuz closed until the US fulfills its conditions, including removal of naval blockade and sanctions, release of frozen assets, and an end to military action on all fronts."Trump said there was a back channel with officials from Iran's Revolutionary Guard, but that he was in 'no hurry'. Meanwhile, Iran denied Trump's assertions of a back channel, saying 'There are no talks taking place between IRGC officials and the Americans'. US Energy Secretary Chris Wright also didn't sound in any rush either for a deal, saying that the US is playing the long game with Iran," Deutsche Bank Research said in a note.In other news, market watchers will also look out for the US Federal Reserve's latest meeting minutes on Wednesday. The minutes are slated to give insights into the group's next rate moves.Back at home and on the corporate front, Saudi Arabian Oil Co. (SASE:2222), d/b/a Saudi Aramco, and Saudi Arabian Mining Co. (SASE:1211), d/b/a Ma'aden, will form a joint venture that will focus on mineral exploration and hard-rock mining in the kingdom.Aramco and Ma'aden closed 0.23% and 1.85% in the green, respectively.Meanwhile, Retal Urban Development (SASE:4322) shares closed 0.11% higher as its Building and Construction Co. unit entered into a 12-month deal to design and deliver building services for the Remal Business Court project in Al Khobar.
