London, May 26 (SANA) Oil prices fell sharply on Monday while Gulf stock markets closed higher, as investor optimism grew over the possibility of a US-Iran agreement that could ease regional tensions and reduce concerns over disruptions to oil supplies.
According to Reuters, Brent crude futures dropped by $7.24, or nearly 7%, to settle at $96.30 per barrel. US West Texas Intermediate crude fell by $6.30, or 6.5%, to $90.88 per barrel.
Market analysts said expectations surrounding a possible easing of tensions in and around the Strait of Hormuz helped calm energy markets. However, they cautioned that restoring normal oil flows could still take months due to damage to regional oil and gas facilities.
At the same time, most Gulf stock exchanges posted gains as investor sentiment improved.
Dubai’s benchmark index rose 1.1%, supported by gains in major real estate and transport shares, including Emaar Properties and Parkin Company.
Abu Dhabi’s main index advanced 0.5%, driven by gains in energy stocks, particularly ADNOC Gas.
Bahrain’s index climbed 0.9% to 1,979 points, while Oman’s benchmark also rose 0.9% to close at 7,775 points.
Saudi Arabia’s stock market remained closed ahead of the Eid al-Adha holiday.
Global energy markets have witnessed heightened volatility in recent weeks amid tensions linked to the Strait of Hormuz and ongoing US naval pressure in the region.
R.H/R.K