On Sunday, Gulf stock markets closed higher, buoyed by optimistic news surrounding nuclear talks between the U.S. and Iran, which were mediated by Oman. The positive sentiment in the markets was further reflected in the Egyptian stock exchange, which ended the day at a new record high. Foreign Minister Abbas Araghchi stated that the discussions began 'well' and are expected to continue, easing concerns about the possibility of renewed conflict in the Middle East if no agreement is reached.

Among the notable developments, the Saudi index rose by 0.3%, with a boost from a 0.5% increase in Al Rajhi Bank's stock. Additionally, Saudi Aramco's Luberef company saw its shares rise by 3.5% after announcing increased dividends for the second half of the year. Market analyst Milad Azar from XTB for the Middle East and North Africa attributed the upward momentum to the recent diplomatic meeting, which relieved prior geopolitical pressures on regional indices.

Analysts suggest that the markets appear poised for continued growth, supported by solid economic fundamentals. The developments surrounding the U.S.-Iran talks have provided a level of confidence to investors in the region, indicating that the potential for political stability could foster further improvements in market performance. Consequently, these developments are being closely monitored by financial analysts and investors alike, as they might significantly impact the investment landscape in the Gulf region and beyond.