From Atiq Sharif

BENGALURU, April 12 (Reuters) - Gulf stock markets closed lower on Sunday after lengthy negotiations in Islamabad failed to produce a breakthrough between the United States and Iran, dimming hopes for a lasting settlement and adding to the pressure on a fragile ceasefire.

The 21-hour negotiations ended with an exchange of accusations. The war, which began more than six weeks ago, has destabilized the global economy and caused a sharp rise in oil prices.

US Vice President J.D. Vance said US officials left Pakistan without reaching an agreement, while Pakistani Foreign Minister Ishaq Dar stressed the need to maintain the ceasefire.

In Qatar, the index fell 0.1 percent, affected by a 1.5 percent drop in Qatar Petrochemical Industries and a 2 percent loss in Qatar Gas Transport Company (Nakilat).

The Saudi index fell 0.3 percent, weighed down by a 1.9 percent drop in shares of ACWA Power. The Kingdom has avoided some of the worst effects of the crisis due to its ability to redirect oil exports to outlets other than the Strait of Hormuz.

Riyadh said on Sunday that it had restored the East-West pipeline to its full pumping capacity of about seven million barrels per day, just days after assessing damage to energy infrastructure caused by attacks during the Iran war.

A Reuters analysis showed that Saudi Arabia benefited from rising oil prices, with estimates indicating that revenues from it rose in March on an annual basis.

Despite the faltering diplomatic efforts, there are early signs of a return to normalcy in the energy shipping sector, as three fully loaded supertankers crossed the Strait of Hormuz on Saturday, the first such crossing since the ceasefire.

Tehran’s de facto closure of the strait, through which about 20 percent of the world’s oil and liquefied natural gas supplies passed, disrupted supplies and caused prices to rise sharply.

The index fell 0.1 percent in Bahrain, while it rose 0.1 percent in Kuwait, and the index in Oman climbed 0.2 percent.

The Egyptian Stock Exchange will be closed for two days starting from Sunday on the occasion of Easter.