Gulf markets bounced back on Thursday, fueled by U.S. President Donald Trump’s surprise move to pause many of his newly imposed tariffs for 90 days. The announcement helped ease global trade tensions — at least temporarily — and sparked strong early trade across the Gulf.
Saudi Stock Market Surge Despite Ongoing Tariffs
Saudi Arabia’s benchmark index, TASI, soared 4% in early trade, its biggest intraday gain since March 2020. The Gulf markets Trump tariffs news played a major role in boosting investor sentiment, especially after a turbulent start to the week.
Top Saudi gainers included:
- Al Rajhi Bank (+3.8%)
- Saudi National Bank (+3.9%)
- Saudi Aramco (+2.6%)
Despite the rally, Saudi remains subject to a minimum 10% tariff, which still applies under the new pause. However, investor confidence got a boost from Saudi Aramco’s announcement of discovering 14 new oil and gas fields. Though small in volume, the news provided some energy sector optimism.
Earlier this week, Saudi’s stock index had experienced its steepest drop in nearly five years. Now, while Thursday’s surge is encouraging, analysts caution that the market is still on track for its worst weekly performance since May.
Also Read: No U.S.-Switzerland Trade Talks Yet, Says Swiss Minister Amid Tensions
Dubai, Abu Dhabi, Qatar Follow the Rally
Other Gulf markets mirrored the upswing:
- Dubai (DFMGI) jumped 2.6%, with Emaar Properties (+4.7%) and Emirates NBD (+3.7%) leading the way.
- Abu Dhabi (FTFADGI) rose 1.3%, powered by ADNOC Gas’s 4.6% gain.
- Qatar (QSI) added 2.1%. Qatar National Bank, the Gulf’s largest lender, beat expectations with a Q1 net profit of 4.26 billion riyals ($1.17 billion), helping lift the index.
These regional gains came in tandem with positive global market trends, as investors welcomed the tariff pause as a break from escalating trade tensions.
China Faces Higher Tariffs, Oil Prices Fall
While many tariffs were put on hold, Trump announced an immediate hike in tariffs on Chinese goods to 125%, up from 104% earlier that day. The move rattled global trade outlooks and pushed oil prices lower, a key concern for oil-dependent Gulf economies.
Still, the overall relief from the 90-day suspension outweighed short-term worries for now. But analysts remain cautious, especially with China likely to respond.
“This pause may be a temporary breath of relief. The hike on China shows the underlying friction hasn’t gone away,” one market analyst said.
Also Read: U.S. Tariffs on China Soar to 125%—Goldman Sachs Warns of Fallout as Global Markets React
Tariff Pause Impact: Short-Term Relief or Long-Term Gamble?
The tariff pause impact is being closely watched. For Gulf investors, the break in trade pressure provides an opportunity to recover from recent losses. However, the tension between the U.S. and China could still trigger volatility in the weeks ahead.
Conclusion: A Bump, Not a Breakthrough
While Thursday’s rally sparked hope across the Gulf, it’s clear the Gulf markets Trump tariffs story is still unfolding. Saudi’s gains, driven by banking and energy stocks, were notable but came after deep losses earlier in the week.
The pause offers breathing space, not a resolution. As oil prices respond to China-U.S. friction, the Gulf’s economic heartbeat remains tied to global headlines.
