Middle Eastern bank stocks soar after Iran ceasefire

2026-04-08 08:41:42

Investing.com - Wednesday, Middle East bank stocks surge sharply, tracking a broader rebound in global equities after earlier tensions between the United States, Israel and Iran were de-escalated, boosting investor sentiment.

Shares in Emirates NBD Bank jumped by nearly 10%, First Abu Dhabi Bank surged 8%, and Qatar National Bank rose 4.2%. Abu Dhabi Commercial Bank also jumped by more than 5%.

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The rally came after a late-night announcement from Donald Trump, who agreed to a two-week ceasefire with Iran—just hours ahead of the self-imposed deadline tied to the reopening of the Strait of Hormuz. Earlier that day, Trump warned that if his demands were not met, “the entire civilization will perish tonight,” marking a sharp shift in tone.

The ceasefire was partly mediated by Pakistan’s Prime Minister Shehbaz Sharif, and includes plans for U.S. and Iranian delegations to meet in Islamabad later this week. Trump said the agreement depends on Iran ending its blockade of oil and natural gas flows through the strait, a key conduit for about one-fifth of the world’s oil shipments.

Iran says it is willing to cooperate. Foreign Minister Abbas Araqchi said Tehran would stop retaliating and ensure safe passage through the waterway.

Trump wrote on Truth Social: “This will be a bilateral ceasefire!” He added that negotiations are moving toward “long-term peace with Iran and peace in the Middle East.” He also described Iran’s proposed 10-point plan as a “workable basis” and said a final agreement could be reached within two weeks.

Markets reacted quickly. Asian stocks rose broadly, with Japan’s Nikkei index up 5.4%, while China’s CSI 300 index and Hong Kong’s Hang Seng index rose 3.4% and 3.1%, respectively. U.S. and European stocks were also expected to open higher.

Oil prices fell sharply, with U.S. crude oil futures dropping to the lowest level since March 26.

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