Gulf Stocks Surge as Trump Signals US-Iran Deal to Reopen Strait of Hormuz
Updated
Updated · Reuters · May 24
Gulf Stocks Surge as Trump Signals US-Iran Deal to Reopen Strait of Hormuz
11 articles · Updated · Reuters · May 24
Qatar’s main index jumped 3.2% on Sunday—its biggest intraday gain since April 8—as Gulf markets rallied on expectations of a US-Iran agreement.
Trump said Washington and Iran had “largely negotiated” a memorandum of understanding to end their three-month war and reopen the Strait of Hormuz, with final details still under discussion.
Bahrain’s main index rose 1.7%, Kuwait gained 2%, and Egypt’s blue-chip index added 1.5%; Qatar National Bank climbed 4.7% and Commercial International Bank rose 3.4%.
The prospect of reopening the strait eased geopolitical risk premiums, but the global energy crisis triggered by the closure is still expected to keep fuel, fertilizer and food costs elevated near term.
Beyond the market rally, what are the hidden terms of the US-Iran deal, and can it survive its first violent test?
With attacks already testing the truce, can the new US-Iran deal truly secure the world's most vital oil shipping lane?
The 2026 Strait of Hormuz Crisis: Market Shocks, Geopolitical Fallout, and the Accelerated Global Energy Transition
Overview
In May 2026, global financial markets surged on hopes for peace as US-Iran negotiations continued, with optimism driving up the Dow Jones, Gulf equities, and Bitcoin. This positive momentum reflected investors’ desire for stability in a tense geopolitical region. However, the market’s gains were fragile, as the absence of a concrete agreement left assets vulnerable to sharp reversals if talks failed. The situation highlighted how quickly sentiment could shift, emphasizing the need for cautious investment strategies amid ongoing risks and headline-driven volatility. The report shows how optimism, risk awareness, and geopolitical uncertainty are tightly linked in shaping market reactions.