Gulf stock markets jump

Gulf stock markets jumped on Wednesday, after the US and Iran agreed to a fragile two-week ceasefire, which included the immediate and secure reopening of the Strait of Hormuz, reports Reuters.

Markets have remained on edge since the US-Israel war with Iran broke out in late February, with Tehran's effective closure of the strait - a vital artery for 20 per cent of global oil and gas supplies - fuelling concerns over higher inflation.

US President Donald Trump on Tuesday said the last-minute deal was subject to Iran's agreement to pause its blockade of the Strait of Hormuz. Iranian Foreign Minister Abbas Araqchi said Tehran would cease counter-attacks and provide safe passage through the waterway if attacks against it stopped.

Brent futures were down 13.3 per cent to $94.76 a barrel at 0822 GMT. "US presidential policies remain difficult to predict, so investors are expected to stay cautious. Even though markets are reacting positively to the recent announcement, the fundamentals of the UAE equity market remain strong," said Tariq Qaqish, deputy CEO at FH Capital in the UAE.