02/04/2026 05:17 AST
Stocks climbed worldwide and oil prices eased as investors bet that the war with Iran could wind down soon.
The S&P 500 rose 0.6 percent on Wednesday, building on its biggest gain since last spring, while the Dow Jones Industrial Average added 390 points and the Nasdaq gained 0.6 percent.
Markets across Europe and Asia surged in tandem, with South Korea jumping 8.4 percent, catching up to Wall Street's rally.
Oil prices retreated toward $100 per barrel, with US crude dropping 2 percent to $98.83 and Brent crude falling 2.1 percent to $101.79. US gasoline prices, however, rose to a national average of $4.06, according to AAA.
The optimism followed President Donald Trump's comments that US attacks on Iran could conclude within two to three weeks and that the US would "not have anything to do with" developments in the Strait of Hormuz. Analysts caution that prior bursts of market optimism have often been short-lived.
Global equities suffered heavy losses in March amid escalating Middle East tensions, with KAMCO Invest reporting a $7 trillion decline.
The MSCI World Index fell 7.4 percent, Asia-Pacific and emerging markets recorded double-digit drops, and Europe slid 8 percent. US markets ended down roughly 5 percent despite a late-month recovery.
Crude oil surged, marking the second-largest quarterly rise of the century, while European gas prices nearly doubled. Expectations for rate cuts faded, though dovish Federal Reserve comments eased some concerns over funding costs. Regional markets in the Gulf were more resilient, slipping just 2.6 percent. Saudi Arabia's Tadawul All Share Index rose 5 percent, fueled by a 9.8 percent gain in Aramco shares.
Dubai led losses with a 16.4 percent drop, Abu Dhabi fell 8.9 percent, and Kuwait ended nearly flat at -1.8 percent. Sector performance was mixed; real estate and transportation declined sharply, while pharmaceuticals, food and beverages, healthcare, and energy saw gains.
In logistics, Abu Dhabi government entities partnered with 7X to launch ADEED, an AI-driven platform aimed at strengthening supply chain and business continuity across the UAE. The platform offers coordinated solutions across air, road, and sea transport, as well as fulfillment services, reflecting the region's drive to secure trade amid heightened risks from the Iran conflict.
Saudi Arabia is also expanding transport infrastructure with a new international rail corridor linking Eastern Province ports to the Al-Haditha border crossing, connecting key ports in Dammam and Jubail to Jordan and northern neighbors.
The Saudi Ports Authority added five new shipping services with global carriers, totaling 63,594 twenty-foot equivalent units, to mitigate disruptions in the Strait of Hormuz.
Arab News
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