Softer oil prices weigh on most Gulf stock markets

Gulf markets react to weaker oil

Most major stock markets in the Gulf ended lower on Tuesday as oil prices declined, dampening investor confidence across the region. However, expectations of a potential U.S. interest rate cut next year offered limited support for sentiment.

Market performance overview

The Saudi benchmark index slipped due to losses in energy and financial shares. Abu Dhabi’s market also retreated, while Qatar posted slight gains supported by banking and industrial sectors. In contrast, Dubai’s stock market managed to close higher, helped by real estate and utility companies.

Oil price impact

Brent crude prices fell below 79 USD per barrel as concerns grew about slowing global demand and rising supply from non-OPEC producers. Analysts noted that lower oil revenue expectations continue to pressure fiscal outlooks in Gulf states.

Investor outlook

Market participants remain attentive to signals from the U.S. Federal Reserve regarding rate policy. A potential reduction in borrowing costs could improve liquidity and benefit emerging markets, including Gulf exchanges.

“Gulf markets are likely to stay sensitive to oil movements and U.S. monetary signals in the coming months,” said a regional analyst quoted by Reuters.

Summary

The decline in oil prices overshadowed optimism about future U.S. rate cuts, leaving most Gulf markets in negative territory.

Author Summary: Falling oil prices led to declines in most Gulf markets, while hopes for U.S. rate cuts only partially offset investor caution.

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Reuters Reuters — 2025-11-25

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