Gulf markets surge as oil prices rise amid Israel-Hamas tensions

Oil lifts markets: Gulf stock markets experienced an upswing on Sunday, driven by increased oil prices amid ongoing tensions in the region fuelled by the Israel-Hamas conflict. The Gulf's financial markets, closely influenced by oil prices, saw a 1.51 per cent rise in oil prices on Friday, with Brent futures settling at $78.76 per barrel. 

Saudi Arabia's benchmark index marked a second consecutive session gain, closing 1.2 per cent higher, with all sectors in positive territory. Alinma Bank saw a notable 4.9 per cent increase, the most significant in over two months, while Al Rajhi Bank, the world's largest Islamic lender, climbed 1.5 per cent. Notable gains were also observed in oil major Saudi Aramco (up 0.6 per cent) and Arabian Pipes (up 5.4 per cent). 

In Qatar, the index rose by 0.1 per cent, supported by gains in the financial, communications, and energy sectors. Qatar National Bank, the region's largest lender, surged 1.4 per cent, and Qatar Navigation climbed 2.6 per cent. Meanwhile, amid ongoing Middle East tensions, top US and European diplomats explored ways on Sunday to prevent the Gaza war from further escalation. In specific market movements, Saudi Arabia rose by 1.2 per cent to 12,285, Qatar gained 0.1 per cent to 10,444, Bahrain added 0.3 per cent to 1,978, Oman gained 0.4 per cent to 4,595, and Kuwait rose 1.1 per cent to 7,730.

(With Reuters Inputs)