Gulf stocks mixed as new tariffs begin and oil prices fall

Stock markets in the Gulf were mixed early on Wednesday, with US President Donald Trump's duties on steel and aluminium going into effect, marking the latest chapter in a trade war that has rattled global markets.

Investor focus continues to be on the pace of trade negotiations, with a possible call this week between President Trump and Chinese leader Xi Jinping in the spotlight. This comes after Trump accused China on Friday for violating a bilateral deal to roll back tariffs and trade restrictions.

Oil prices dipped, with Brent crude futures down 0.3 per cent to $65.46 a barrel by 0644 GMT. Prices were weighed down by increasing OPEC+ output and continued concerns over the global economic outlook due to trade tensions.

Saudi Arabia's benchmark stock index was up 0.49 per cent. Arabian Pipes Company gained 3.63 per cent in early trade. JP Morgan also said on Tuesday that the kingdom was set to issue $12.6 billion in bonds for the rest of the year.

Markets in the UAE were trading higher, with Dubai's main share index up 0.14 per cent and Abu Dhabi's benchmark index up 0.15 per cent in early trade.

In Dubai, Commercial Bank of Dubai was the top gainer on the index, up 3.04 per cent. The index is set for a third consecutive session of gains.

Qatar's benchmark stock index was down 0.36 per cent, with maritime and logistics services provider Qatar Navigation down 1.09 per cent, the top loser on the index.

Qatar recorded a budget deficit of 0.5 billion riyals ($133.31 million) in the first quarter of 2025, according to data from the finance ministry. Total revenue stood at 49.9 billion riyals, down 7.5 per cent from the same quarter last year.

Wednesday is the deadline for countries to submit their best proposals for trade deals with the US and a chance to avoid hefty tariffs.

Markets are also expecting the wildfires that have swept Canada since last month to impact oil supply, despite a temporary relief from wet weather. Wildfires in Alberta have affected more than seven per cent of the country's crude oil output, according to Reuters calculations.

(Reporting by Rishab Shaju in Bengaluru Editing by Bernadette Baum)