Major Gulf stock markets edged higher on Tuesday as investors turned their attention to upcoming corporate earnings and prospects for renewed diplomatic engagement between Iran and the United States.

Saudi Arabia’s benchmark index gained modestly, supported by gains in key energy and industrial stocks. Optimism around forthcoming earnings drove flows into regional equities, even as geopolitical watchers weighed an expected restart of nuclear talks scheduled later this week.

Traders said the combination of strong underlying economic data and corporate performance expectations helped underpin the gains.

Iran and U.S. officials signalled renewed dialogue that could reduce regional tensions, providing additional encouragement to risk assets.

The prospect of diplomatic progress offered relief after periods of elevated uncertainty over supply routes and investor risk premiums.

Energy and non‑oil sectors both contributed to the rally, reflecting diversified economic activity and improved investor confidence in the region’s growth trajectory. Saudi Arabia’s non‑oil figures showed notable expansion in recent quarters.

Currency and fixed‑income markets in the Gulf also reflected the positive mood, with relatively stable yields and modest foreign exchange moves. Regional central bank communications emphasised measured policy stances.

Analysts said the regional rally could strengthen if corporate earnings beat forecasts and diplomatic developments reduce geopolitical risk, although volatility tied to external factors remains possible.

Source: Reuters