UAE Markets Lead Rally After Ceasefire Oil Prices Plunge Over 18%

2026-04-08 02:25:04

(MENAFN- Khaleej Times) [Editor's Note: Follow Khaleej Times live blog amid US-Israel-Iran ceasefire for the latest regional developments.]

Markets rallied while oil prices sank more than 18 per cent after the US, Israel and Iran reached a two-week ceasefire on Wednesday.

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Oil prices plunged below $100 a barrel on Wednesday to around $91 a barrel, down 18 per cent, bringing huge relief to importing nations around the world.

Gold prices climbed to a nearly three-week high on Wednesday morning, surpassing the $4,800-an-ounce mark. The rally in global prices pushed precious metals in Dubai up by around Dh12 per gram.

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The UAE led the stock market rally in the Gulf region, hitting a multi-year high as the two local bourses saw their market capitalisation jump nearly Dh125 billion on Wednesday.

Dubai Financial Market's market capitalisation jumped Dh50.4 billion to Dh840.2 billion, while Abu Dhabi Securities Exchange saw its market cap reach Dh2.66 trillion, up Dh74.5 billion.

The Dubai Financial Market General Index jumped more than eight per cent in early trade before settling at 5,777.47, up 6.9 per cent for the day. As many as 36 out of 41 firms ended in positive territory.

According to Neal Keane, head of global sales trading at ADSS, it was the“biggest one-day move since March 2020.”

Property firms led the gains, with Emaar Properties rising 13 per cent, while Emaar Development, Salik, Emirates NBD and Air Arabia all climbed more than 10 per cent.

The Abu Dhabi Securities Exchange gained 2.8 per cent, marking its biggest move since October 2022. The capital's bourse was led by Aldar, RAK Properties, FAB and ADCB.

“Last-minute ceasefire agreement could be a turning point for the UAE as it should allow the country to fully reopen airspace, allowing tourism and other key industries to recover in the short term,” Keane said, adding that the market could see further volatility in the days ahead as Iran-related headlines and short-term oil price gyrations dictate sentiment.

According to Karine Kheirallah, head of investment strategy and research for MEA at State Street, the ceasefire announcement has clearly acted as a strong catalyst for investor confidence across UAE markets.

“Equity markets rebounded sharply, largely driven by strong performance in the real estate and banking sectors. Overall sentiment has improved noticeably, with investors interpreting the ceasefire as a positive development towards de-escalation and a meaningful reduction in geopolitical risk,” she said.

Regional, global

Stock markets in the Gulf region lost billions of dollars during the war. The two-week ceasefire brought much-needed relief to investors.

Among other regional markets, Qatar's stock market jumped 3.4 per cent, as all its constituents advanced, led by energy shares. The Gulf's biggest lender, Qatar National Bank, climbed 3.5 per cent.

In Saudi Arabia, the benchmark index added 1.4 per cent, led by a 2.8 per cent rise in Al Rajhi Bank.

Boursa Kuwait added 1.8 per cent, while Bahrain's index increased 1.2 per cent. Adam Vettese, market analyst at eToro, said the temporary two-week ceasefire helped ease geopolitical tensions and support a recovery in risk appetite.

“The rebound reflects a swift shift in sentiment as investors return to local equities, although markets remain highly reactive to geopolitical developments. Upcoming diplomatic talks will be critical in shaping near-term market direction,” added Vettese.

European shares jumped more than three per cent as the two-week Middle East ceasefire sparked a relief rally across global markets, raising hopes that oil and gas flows through the Strait of Hormuz could soon resume.

The pan-European STOXX 600 index rose 3.6 per cent to 611.86 points at around 12.30pm UAE time.

Similarly, Germany's DAX and London's FTSE 100 index also climbed during the day.