Gulf stock markets closed higher on Monday, driven by a broad-based lift in investor sentiment as hopes for a diplomatic resolution to the U.S.-Iran conflict gained traction.
Dubai's benchmark index led the regional advance, rising 1% as traders priced in a potential reduction in geopolitical risk premiums across the Middle East.
The rally reflects a tentative shift in market psychology, with investors weighing the prospect of de-escalation against ongoing physical threats to energy infrastructure.
While the broader region benefited from the improved diplomatic outlook, Saudi Arabia's benchmark index ended the session flat.
The divergence highlights the persistent drag from recent attacks on Saudi oil sites, which continue to weigh on domestic equities despite the broader regional optimism.
This session marks a continuation of the tentative stabilization seen in Gulf markets over the past few days.