Major Gulf stock markets fell in early Thursday trade as the fragile regional truce appeared to be under strain, spooking investors and reviving concerns over prolonged geopolitical and inflationary risks, reports Reuters.
The ceasefire's durability was cast into doubt on Wednesday as Israel continued strikes on Lebanon, with Iran saying it would be "unreasonable" to pursue talks on a lasting peace deal.
Israel and the United States both said the two-week ceasefire did not cover Lebanon, and Israeli Prime Minister Benjamin Netanyahu said the strikes would continue.
Iran also targeted oil infrastructure in neighbouring Gulf states, including a Saudi pipeline used as an alternative route to the blockaded Strait of Hormuz, an oil industry source said. Kuwait, Bahrain and the UAE likewise reported missile and drone strikes.
Saudi Arabia's benchmark index eased 0.2 per cent, hit by a 0.5 per cent fall in the country's biggest lender Saudi National Bank.
However, Saudi Aramco added 0.2 per cent. The oil giant had an edge over regional peers by rerouting exports. Reuters analysis showed the Kingdom ?benefited from higher oil prices with estimated March oil revenues up from a year earlier, while countries without alternative routes lost billions.
Brent crude futures were up $2.18, or 2.3 per cent, at $96.93 a barrel at 0645 GMT.
Dubai's main share index dropped 1.3 per cent, a day after gaining more than 6 per cent, weighed down by a 2.3 per cent slide in blue-chip developer Emaar Properties and a 1.6 per cent decrease in top lender Emirates NBD.
In Abu Dhabi, the index fell 0.4 per cent, with Aldar Properties losing 1.6 per cent
