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Abu Dhabi, Dubai Shares Fall; US Extends Iran Ceasefire

-- Emirati shares ended Wednesday's trading session in the red as investors remained cautious amid the uncertainty over peace talks between the US and Iran.

At the close of trading, the FTSE ADX General Index was down 0.764%, while the DFM General Index dropped 1.059%.

US President Donald Trump said that he extended the ceasefire with Iran and will continue with the blockade of its ports until a "unified proposal" is submitted and discussions are finalized.

Meanwhile, Iranian Foreign Minister Seyed Abbas Araghchi said in a social media post that the blockade of Iran's ports is an "act of war" and a violation of the ceasefire agreement. Araghchi also mentioned that the country knows how to neutralize these restrictions.

"War headlines remain very inconclusive. President Trump's announcement of a last-minute ceasefire extension likely validates some degree of optimism that hasn't left USD crosses despite the deadline approaching. But the situation in the Strait of Hormuz remains as unclear as ever, with the US blockade still in place and reports that a UK container ship was shot at by the Iranians yesterday," ING said.

Back home and on the corporate front, Palms Sports (ADX:PALMS) closed 2.69% lower. The sports management company reported a higher first-quarter attributable profit of 18.6 million Emirati dirhams, backed by a growth in contract expansions and effective cost management.

Over in Dubai, BHM Capital Financial Services (DFM:BHMCAPITAL) approved a total shareholder distribution of 20%, comprising 5% cash dividends and 15% bonus shares, for 2025. Shares of the financial services group were 5.51% in the green at closing.

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