Stock markets across the Middle East suffered a series of mixed reactions after President Donald Trump announced that the United States would withdraw itself from the Iran Nuclear Deal of 2015.
President Trump announced that the United States would be withdrawing from the international deal with Iran while speaking at the White House, saying “The Iran deal is defective at its core. If we do nothing, we know exactly what will happen,” and “In just a short period of time, the world’s leading state sponsor of terror will be on the cusp of acquiring the world’s most dangerous weapons.”
Leaders of France, Germany and The United Kingdom expressed their commitment to the deal, coming together to assure all of their concerns.
The Gulf Market
The announcement of the withdrawal caused a huge stir across Gulf markets, with the prices of oil surging on Wednesday.
Vrajesh Bhandari, a portfolio manager at Al Mal Capital said: “Stock markets in the Gulf have been weak (over the) last couple of weeks – so quite likely the event is priced in. There are other moving parts in this geopolitical equation, including the wars in Yemen and Syria, and so Iran’s reaction would be keenly watched,”
He then went on to add that “The rise in Brent to a three-and-a-half year high has significant positive implications for oil exporting nations. If crude oil can hold these levels for a while, I think investors would begin factoring in the improving macro fundamentals.”
As Saudi Arabia’s stock market index dropped 0.2 percent, Qatar also dropped a 0.1 percentage, Dubai stooping 0.4 percent and Abu Dhabi with 0.6
According to Reuters, one UAE bank employee said: “This will impact how the region is viewed by foreign investors. There will be more negativity, more highlighting of the risks,” when speaking about how the withdrawal by the United States might impact negatively.