SYDNEY, March 18, 2026, 11:36 AEDT
Macquarie Group shares got a lift on Wednesday, jumping roughly 0.8% to around A$197.3 in late-morning Sydney action. Investors responded after Reuters said the firm had dropped out of the running for Kuwait’s oil pipeline network—a deal that could fetch up to $7 billion. 1
This marks one of the earliest documented cases of an investor pulling out of a Gulf asset sale linked to the Iran war. Macquarie’s decision comes just weeks after the group, based in Sydney, reported stronger profits across every major division for the third quarter of fiscal 2026. 1
No word from Macquarie on the ASX on Wednesday, and the firm isn’t talking about Kuwait. Investors looking for an update found nothing new in the way of company guidance. 2
On Friday, the company notified Kuwait Petroleum Corporation (KPC) it was stepping away from the process, citing the conflict and uncertainty, according to Reuters. The sale, which was rolled out in January, aimed to bring foreign investment into a pipeline system that might have commanded as much as $7 billion. 1
It all comes down to the Strait of Hormuz. For Kuwait, it’s the only way out for its crude—no alternative export route exists. The waterway, squeezed between Iran and Oman, typically handles around 20% of the world’s oil flow. KPC has responded by declaring force majeure—a contractual move triggered by exceptional circumstances—slashing output, and still inviting non-binding bids through April 7. 1
BlackRock and KKR had been tied to the sale, but Reuters wasn’t able to confirm if they’re still involved. Previously, Gulf pipeline deals had been pitched to investors as solid, long-term bets, offering returns in the 12% to 14% range. 1
Anshul Gupta, who leads deal advisory at KPMG for the Middle East, told Reuters a number of clients are “taking a little more time” to push deals across the line. Still, CedarBridge Capital Partners co-founder Imad Ghandour said he’s confident the Gulf’s “macro trends will persist.” 1
Gains landed softly—nothing flashy. Back in February, Macquarie flagged better profits in major segments. UBS called the core results strong. Citi, for its part, doubted the update would budge 2026 consensus. 3
The risk is clear: a prolonged war and oil stuck above $100 could drive up funding costs, delay deals, and lead buyers to rethink asset prices. Brent closed at $103.42 a barrel on Tuesday. That same day, Australia’s central bank hiked rates to 4.1%, citing inflation worries tied to the Middle East shock. 4
Even so, not all recent activity signals a full-scale pullback. Dubai Aerospace Enterprise just signed off on a purchase of Macquarie AirFinance, the deal valuing the target at roughly $7 billion. On top of that, a consortium led by Macquarie clinched an A$11.7 billion agreement for Qube Holdings. The group still seems ready to chase sizable transactions when the numbers and terms are right. 5
