Gulf stocks fell as peace hopes faded due to renewed drone activity.

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From Atiq Sharif

- Most Gulf stock markets closed lower on Sunday after fresh drone attacks and uncertainty surrounding peace talks with Iran weighed on investor sentiment, overshadowing relief over the first Qatari liquefied natural gas tanker to cross the Strait of Hormuz since the start of the war.

The tanker's passage came after a relative lull of about 48 hours. However, Kuwait reported the presence of hostile drones in its airspace, while the UAE indicated renewed Iranian attacks after weeks of relative calm following the US-brokered ceasefire.

In Qatar, the main index fell 0.5 percent, with Qatar National Bank, the largest bank in the Gulf, losing 1.5 percent.

Kuwaiti stocks fell 0.5 percent, and Bahraini stocks declined 0.4 percent.

However, the benchmark index in Saudi Arabia rose 0.8 percent, with Al Rajhi Bank climbing 1.7 percent.

Shares in oil giant Saudi Aramco rose 0.8 percent after it reported a 25 percent jump in first-quarter profit, as its East-West pipeline operated at full capacity to offset disruptions caused by tensions between the United States and Iran in the Strait of Hormuz.

Outside the Gulf region, Egypt's blue-chip index rose 1.9 percent, with most of its stocks climbing, including Commercial International Bank, which rose 1.3 percent.

Stéphane Gemebert, the World Bank’s regional director for Egypt, Yemen and Djibouti, said on Saturday that Egypt would receive an additional $300 million from the bank to help it cope with the fallout from the Iran war.