Gulf stocks close higher as oil climbs on Iran sanction threat

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Most Gulf stock markets closed higher on Sunday as oil prices rose on U.S. President Donald Trump's threat of economic sanctions against Iran's trading partners. Oil settled at $94.39 a barrel on Friday.

The United States and Iran exchanged defiant messages ahead of Monday's planned announcement of new U.S. economic sanctions, which could affect Iran and major trading partners including China.

Saudi and Dubai lead gains

Saudi Arabia's main index gained 1.1% to 11,079, with financial shares leading advances. Al Rajhi Bank rose 2.1%, while Saudi Arabian Mining gained 4%. National Shipping Company of Saudi Arabia surged 9.5% to 37.30 riyals per share, its highest closing level in two decades.

Dubai's index edged up 0.1% to 9,688, helped by gains in communications, financial, energy and materials stocks.

Egypt, Qatar and other markets

Qatar National Bank, the region's largest lender, climbed 1.6%, while Qatar Gas Transport added 1.5%.

Egypt's index extended gains for a second consecutive session, closing 1.1% higher at 55,350 as most shares advanced. Commercial International Bank rose 1.3%, while Telecom Egypt gained 3.1%. The state-controlled telecoms operator said it would be included in the FTSE Emerging Markets Index following the index provider's semi-annual review for September. Egypt's central bank left its overnight interest rates unchanged on Thursday.

Kuwait's index rose 0.8% to 9,309, while Bahrain's index ended flat at 1,944. Oman's index fell 0.2% to 7,509.

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