From Atiq Sharif

June 9 (Reuters) - Most Gulf stock markets closed higher on Tuesday after Iran and Israel announced a halt to their tit-for-tat attacks, but Tehran warned the truce would end if Israel continued its attacks on Hezbollah in Lebanon.

The most direct clash between Iran and Israel since April threatened to undermine Washington's efforts to mediate an end to the more than three-month-old war in the Middle East.

Most Gulf markets declined in the previous session, as renewed Israeli attacks on Iran and Lebanon undermined hopes of ending the war in the near term.

US President Donald Trump told Axios in an interview published Monday that he warned Israeli Prime Minister Benjamin Netanyahu that he would leave him to fight alone if he resumed war with Iran.

The Saudi index rose 1.3 percent, with shares of National Bank of Saudi Arabia, the kingdom’s largest bank by assets, climbing 4.2 percent.

Meanwhile, Brent crude futures fell $1.55, or 1.6 percent, to $92.70 a barrel by 10:12 GMT.

Washington urged Tehran to reopen the Strait of Hormuz, which carried about a fifth of the world's oil supply before the US and Israeli airstrikes on Iran in late February.

Dubai's index rose 0.9 percent, driven by a 2 percent increase in shares of Emirates NBD, the country's largest bank.

In Abu Dhabi, the index rose 0.8 percent.

Daniel Takieddine, co-founder and CEO of Skylinks Capital Group, said that the easing of geopolitical tensions in the region and growing expectations of a diplomatic breakthrough have helped GCC stock markets to recover, but with events changing rapidly, investors are likely to remain cautious and volatility may persist despite improved sentiment.

The Qatari index rose 1.9 percent, supported by a 1.2 percent gain in Qatar National Bank, the largest bank in the Gulf, after it fell by more than two percent yesterday.

Outside the Gulf region, Egypt's blue-chip index rose 1 percent.

A Reuters poll released on Monday showed that Egypt's annual inflation rate likely fell to 14.5 percent in May, due to favorable base effects, but analysts warn that this decline will be short-lived, amid expectations that increases in electricity prices and other inflationary pressures will push consumer prices higher in the coming months.