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Investors look at possible Iran War Deal as they mix up the Gulf bourses

Investors weighed the growing optimism about a possible agreement to end the 'Iran war', backed by increasing U.S. sanctions on Tehran ahead of future talks.

U.S. president Donald 'Trump' said that the war he launched with Israel in late February is nearly over. This was despite the fact that the shipping blockade announced by him had come into effect, and the traffic through the Strait of Hormuz was still far below normal.

Washington warned that it may impose secondary sanctions against buyers of Iranian crude oil in advance of future negotiations, only weeks after easing some Iran energy sanctions.

After negotiations on Sunday failed to produce a breakthrough, U.S. officials and Iranian officials are considering returning to Pakistan this weekend for more talks. Pakistan's Army Chief arrived in Tehran on Wednesday to help prevent a resurgence of the conflict.

Dubai's main stock index rose 1.4%. This was largely due to a 2.1% gain in Emaar Properties, the blue-chip developer.

Budget airline Air 'Arabia reversed its early losses and traded 1.2% higher.

The index in Abu Dhabi increased by 0.3%.

Saudi Arabia's benchmark stock index dropped 0.2%. Saudi National Bank, the country's largest lender in terms of assets, lost 2.1% and oil giant Saudi Aramco fell by 0.3%.

Brent crude futures were barely changed at $94.67 a barrel on scepticism about the U.S. - Iran peace talks?ending the disruption of the traffic through the Strait of Hormuz.

Separately the $925 billion sovereign fund of the Kingdom will channel its investment into the 'domestic' economy by focusing on six priorities in a five-year plan. It is stepping up efforts to reduce the dependence of the kingdom on oil.

The Qatari Index eased by 0.1% during a turbulent session. Industries Qatar, a petrochemical manufacturer, fell 0.7%.

Qatar, the world's second largest LNG exporter, may extend the force majeure period on gas supply beyond mid-June. Edison stated that the Italian importer expects the lost volumes to be replaced by U.S. LNG instead of Russian?gas.

QatarEnergy canceled 10 cargoes from Edison between mid-April and mid-June due to the disruption of supplies. The CEO of QatarEnergy said that Iran's attack on last month knocked down 17% the LNG export capacity of QatarEnergy. (Reporting and editing by Joe Bavier in Bengaluru, Ateeq Sharif in Bengaluru)

(source: Reuters)