Gulf markets rise as Iran ceasefire focus precedes Trump's China visit
Most Gulf stock markets recorded gains on Wednesday as investor sentiment was lifted by expectations of a ceasefire in the Iran conflict and anticipation surrounding US President Donald Trump's impending visit to Beijing for high-stakes trade negotiations with China.
Market participants across the Gulf Cooperation Council region responded positively to signals that the Iran situation may be moving toward a diplomatic resolution, reducing the geopolitical risk premium that had weighed on regional equities and energy markets in recent weeks.
Trump's China trip, framed as a major bilateral engagement between the world's two largest economies, added another layer of optimism, with traders betting that even preliminary progress on trade would ease global supply chain pressures and support commodity demand.
Analysts cautioned that the market gains remain fragile, contingent on substantive developments on both the Iran ceasefire track and the US-China negotiation front. Any escalation or diplomatic setback could rapidly reverse the current risk-on posture.
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