Most stock markets in the Gulf ended higher on Tuesday ahead of talks between U.S. President Donald Trump and Russian President Vladimir Putin aimed at ending Russia's war with Ukraine, while tensions in the region dampened investor sentiment.
Trump said he would speak with Putin to discuss a potential Russia-Ukraine cease-fire proposal, which could alleviate some geopolitical uncertainty.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.8%, dragged down by a 1.4% fall in Saudi Aramco (2222.SE), opens new tab as the oil behemoth traded ex-dividend.
Israeli air strikes on Gaza killed more than 300 people, Palestinian health authorities said, threatening a complete collapse of a two-month ceasefire as Israel vowed to use force to free its remaining hostages in the enclave.
Meanwhile, Trump has vowed to continue the U.S. assault on Yemen's Houthis unless they end their attacks on ships in the Red Sea.
Despite oil prices rebounding due to heightened geopolitical tensions in the region, these same tensions negatively impacted market sentiment, said Hassan Fawaz, Chairman and Founder of GivTrade.
"These factors could continue to influence the market's general performance."
Dubai's main share index (.DFMGI), opens new tab lost 0.4%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab losing 1.1% and toll operator Salik (SALIK.DU), opens new tab down 1.2%.
In Abu Dhabi, the index (.FTFADGI), opens new tab nudged 0.1% higher.
Oil prices rose more than 1% to their highest since the beginning of the month, supported by instability in the Middle East and China's plans for more economic stimulus.
The Qatari index (.QSI), opens new tab finished 0.6% higher, led by a 4.2% rise in Qatar Gas Transport (QGTS.QA), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.5%, with Talaat Moustafa Group (TMGH.CA), opens new tab increasing 1.1%.
