Gulf Markets Rise on Firm Oil Prices and Softer US Rate Bets

Gulf Markets Rise on Firm Oil Prices and Softer US Rate Bets

Most Gulf stock markets ended higher on Sunday. Steady oil prices and softer expectations for US interest rates lifted investor mood after weeks of heavy selling.

Saudi Arabia’s benchmark index rose 1.1 percent to 10,506. The gain broke a run of five straight weekly losses. Al Rajhi Bank climbed 1.7 percent, while oil giant Saudi Aramco added 0.6 percent, tracking stable crude prices.

Brent crude settled at $102.25 a barrel on Friday, down just 6 cents. West Texas Intermediate fell 1.9 percent to $91.11 a barrel.

The weaker-than-expected US jobs report helped Gulf markets. With hiring slowing in America, traders now expect the Federal Reserve to hold rates steady. That matters for the Gulf because most regional currencies are pegged to the US dollar, so Gulf markets closely follow US rate expectations.

Elsewhere in the region, the picture was mixed. Oman’s index rose 1 percent and Bahrain added 0.1 percent. Qatar’s index eased 0.1 percent to 9,185, while Kuwait slipped 0.3 percent. Outside the Gulf, Egypt’s blue-chip index jumped 1.6 percent to 53,911.

On the supply side, OPEC and its allies kept oil output targets unchanged for November. Russian Deputy Prime Minister Alexander Novak said the group’s monitoring committee found that global oil markets were still volatile and tight because supply was falling short.

Over the past week, Brent slid nearly 2 percent while WTI gave up 1.4 percent. Prices had reached an intraday high of $126 a barrel in late April, showing how far the market has swung this year.

Sources:
– https://www.reuters.com/world/middle-east/most-gulf-shares-end-higher-firmer-oil-us-rate-bets-2026-10-04/
– https://www.thenationalnews.com/business/energy/2026/10/04/opec-keeps-oil-output-targets-unchanged-for-november/