Gulf stock markets closed mixed amid optimism over a potential US-Iran agreement.

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- Gulf stock markets closed mixed on Thursday after Israel and Lebanon agreed to a ceasefire, boosting optimism about a broader deal to end the U.S.-Iran war even as tensions persist.

A joint statement issued by the US State Department following negotiations in Washington stated that a ceasefire between Israel and Lebanon requires the Iranian-backed Hezbollah group to completely cease fire and remove all its elements from the area south of the Litani River.

US President Donald Trump indicated on Wednesday that progress in negotiations with Iran could be made by early next week.

Earlier, Iran launched an attack on Kuwait that damaged the airport and injured dozens, while the US military launched raids near the Strait of Hormuz.

Ahmed Assiri, an economist at Pepperstone, said that markets are cautious, with renewed focus on developments related to Iran and the Strait of Hormuz after a period of easing tensions and notable progress in negotiations.

The main Saudi market index lost 0.1 percent, affected by a 0.5 percent drop in shares of the National Bank of Saudi Arabia, the country's largest bank by assets, along with a 0.4 percent decline in shares of Saudi Aramco.

Brent crude futures fell $3.05, or 3.1 percent, to $94.76 a barrel by 12:24 GMT.

Shares in Saudi Arabia's Kingdom Holding Company fell 5 percent. The stock had recently surged amid growing investor enthusiasm over its stake in the soon-to-be-launched SpaceX.

Dubai's main index rose 0.6 percent, with Emaar Properties shares climbing.

In Abu Dhabi, the index ended trading unchanged.

Qatar's main stock index fell 0.6 percent, with Qatar National Bank, the largest bank in the Gulf, losing 1.1 percent.

The Bahraini index fell 0.1 percent to 1982 points, while the Omani index lost 0.2 percent, recording 7657 points.

The Kuwaiti index rose 0.3 percent to 9224 points.

Outside the Gulf region, Egypt's blue-chip index rose 0.2 percent.