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MIDEAST-STOCKS-Major Gulf bourses gain on signs of de-escalation between US and Iran

ReutersFeb 2, 2026 8:40 AM

- Major stock markets in the Gulf rose in early trade on Monday after U.S. President Donald Trump said Iran was "seriously talking" with Washington, a comment that signaled potential de-escalation in tensions.

Iran is reviewing details of several diplomatic channels aimed at easing tensions with the United States, Foreign Ministry spokesperson Esmaeil Baghaei said on Monday, adding that Tehran hoped for progress in the coming days.

Against the backdrop of a U.S. Navy buildup near Iran, Trump told reporters last week that Iran was "seriously talking" with Washington. His remarks came just hours after Iran's top security official, Ali Larijani, wrote on X that preparations for talks were in progress.

Saudi Arabia's benchmark stock index .TASI rose 0.2%, a day after falling the most in nearly 10 months - with shares in Saudi Arabian Mining Company 1211.SE gaining 2.9%.

Elsewhere, oil behemoth Saudi Aramco 2222.SE was up 0.2%.

Dubai's main share index .DFMGI advanced 1.3%, led by a 3% jump in blue-chip developer Emaar Properties EMAR.DU.

In Abu Dhabi, the index .FTFADGI added 0.2%.

Iran's leadership warned of a regional conflict on Sunday if the U.S. were to attack it and it designated European Union armies as "terrorist groups" in a retaliatory move after the EU designated the country's Revolutionary Guards as a terrorist organisation.

The Qatari index .QSI gained 0.4%, with Qatar National Bank QNBK.QA - the Gulf's biggest lender by assets - rising 0.7%.

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