-- Shares in the United Arab Emirates were back in the green on Wednesday as markets breathed a sigh of relief after the US and Iran agreed to a two-week ceasefire deal brokered by Pakistan.
At the close of trading, the FTSE ADX General Index gained 2.846%, while the DFM General Index surged 6.909%.
Oil prices dropped as supply disruption concerns eased after the US and Iran suspended their attacks for two weeks, with US President Donald Trump saying that all military objectives were exceeded. Trump also called the 10-point proposal received from Iran a "workable basis on which to negotiate."
"Brent crude fell as low as USD92/bbl on the news, but the drop in prices is contingent on the pre-condition that traffic through the Strait of Hormuz resumes. For prices to stabilise at lower levels, oil and gas flows through the strait must pick up again, which remains uncertain. The deal looks fragile, particularly as Iran is allowed to charge fees on ships passing through," Danske Bank said in a note.
Back home, UAE's Presidential Adviser Anwar Gargash said in a social media post that the country prevailed in a war it "sincerely sought to avoid" and that it will now take steps to navigate a "complex regional landscape."
On the corporate front, petrochemicals company Borouge (ADX:BOROUGE) stocks closed 2.71% higher as its shareholders approved a final dividend of 0.081 Emirati dirham per share for 2025, taking the full-year dividend to 0.162 dirham per share.
Over in Dubai, Commercial Bank of Dubai (DFM:CBD) announced it would redeem its $600 million of perpetual additional tier 1 capital securities on April 21. Shares of the Emirati lender closed the session 0.77% in the green.