Financial Wire

UAE Shares Begin New Week Downbeat; Oil Prices Rise as US-Iran Talks Falter

-- Emirati stocks ended Monday's trading session in the red as failed negotiations between the US and Iran kept investors in a risk-off mode.

At the close of trading, the FTSE ADX General Index fell 0.536%, while the DFM General Index lost 0.826%.

Oil prices rose after the US and Iran failed to reach an agreement in Pakistan over the weekend. US President Donald Trump said in a social media post that the US Navy will commence the blockade of all tankers entering and exiting the Strait of Hormuz immediately.

"Oil markets rallied sharply on Monday after US-Iran talks collapsed over the weekend. ICE Brent jumped more than 9% in early trade, while NYMEX WTI pushed above $105/bbl. In response, the US military plans to implement a blockade of all maritime traffic entering and exiting Iranian ports from 10:00am Monday Washington time, while allowing vessels not calling at Iranian ports to continue transiting Hormuz. Despite this, two fuel tankers attempted to exit the Gulf via routes close to Iran's coastline, marking the first such movements since the blockade was announced," ING said.

Back home, the Dubai Department of Economy and Tourism partnered with HSBC's unit HSBC Bank Middle East to offer tailored facilitation, licensing advice, and ecosystem navigation to the latter's institutional and private wealth clients looking to expand or establish financing and treasury operations in Dubai.

Over to corporates, RAK Properties (ADX:RAKPROP) confirmed continuity of core operations and services amid uncertainty surrounding the situation in the Middle East. Shares of the property developer closed the session 1.41% lower.

Meanwhile, in Dubai, Emirates Central Cooling Systems (DFM:EMPOWER), d/b/a Empower, launched a new customer center at its headquarters based in Al Jadaf, Dubai. The cooling services company's shares were flat at the close of trading.

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