Gulf stock markets closed higher on Wednesday as investors looked for progress toward ending the Iran war, which could help ease fears of oil-fuelled inflation.
U.S. President Donald Trump said his administration held "very good discussions" with Iran during all-day negotiations on Tuesday, raising hopes that the five-month conflict could soon come to an end.
In a phone call on Tuesday, Trump and Qatar's Emir Sheikh Tamim bin Hamad Al Thani discussed ways to bridge differences between Washington and Tehran and strengthen prospects for a durable settlement, Qatar's Emiri office said.
However, Yemen's Iran-aligned Houthis said they attacked a Saudi oil tanker in the Red Sea, denting hopes of a de-escalation in Iran war hostilities that could restore shipping traffic and oil flows in the Middle East. On Tuesday, an Indian-flagged vessel sank near Yemen after a projectile strike; all 14 crew members were rescued safely.
Brent crude futures were up 81 cents, or 1.02%, at $80.17 a barrel by 1200 GMT.
Saudi Arabia's benchmark index (.TASI) added 0.3%, led by a 1.1% rise in Al Rajhi Bank (1120.SE). However, oil major Saudi Aramco (2222.SE) dropped 0.6%.
Brent crude futures were down 32 cents, or 0.4%, to $79.04 a barrel at 0630 GMT, a day after falling more than 5%.
Among other losers, Power and Water Utility Co for Jubail and Yanbu (MARAFIQ) (2083.SE) plunged a record 10%, hitting the exchange's daily lower limit after swinging to second-quarter losses.
Elsewhere, Saudi real estate developer Retal Urban Development Co (4322.SE) fell 7.8% after posting a second-quarter loss.
Dubai's main share index (.DFMGI) gained 0.4%, led by a 1.4% rise in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, the index (.FTFADGI) was up 0.1%.
GCC stock markets were largely higher, supported by renewed hopes for diplomacy, though continued threats to shipping limited gains. Investors remained focused on regional developments, while domestic fundamentals and second-quarter earnings provided broader support for sentiment, said Joseph Dahrieh, Managing Director at Tickmill.
The Qatari index (.QSI) gained 0.9%%, with most of its constituents in positive territory including the Gulf's biggest lender, Qatar National Bank (QNBK.QA), which was up 1.2%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) finished 0.3% higher.
Egypt's net foreign reserves rose to $56.294 billion in July from $55.072 billion in June, the central bank said on Wednesday.
