Gulf markets reacted mixed to Iran's announcement of progress in peace talks with the US.

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From Atiq Sharif

- Gulf stock markets closed mixed on Monday after Iranian negotiators announced progress in peace talks with the United States, easing concerns that the negotiations might falter.

Mediators said senior U.S. and Iranian officials concluded the first round of talks in Switzerland on Monday, after a tense start that saw Tehran close the Strait of Hormuz and U.S. President Donald Trump threaten to resume attacks on Iran.

Qatar and Pakistan, which are acting as mediators, said in a joint statement published by the Qatari Foreign Ministry that Washington and Tehran had agreed on a 60-day roadmap to reach a final agreement, with technical talks to continue throughout the week.

Dubai's index rose 0.3 percent, supported by a 1.9 percent increase in shares of Emirates NBD, the Gulf state's largest bank.

In Abu Dhabi, the index rose 0.2 percent.

Investor sentiment may continue to rise due to the gradual improvement in the Middle East's geopolitical situation. Daniel Takieddine, co-founder and CEO of Skylinks Capital Group, said that progress in diplomatic talks between the US and Iran could help ease concerns in the short term, but caution is likely to persist as investors await further developments following repeated cycles of escalation and de-escalation.

He added that the reduced risks around the Strait of Hormuz are generally positive for stability and economies in the region, but the decline in crude oil prices could weigh heavily on markets that are heavily dependent on the energy sector.

Qatar's index fell 0.3 percent, weighed down by a 1.1 percent decline in shares of Qatar National Bank, the largest bank in the Gulf region.

Meanwhile, four Qatari liquefied natural gas tankers headed towards the Strait of Hormuz on Monday despite reduced shipping traffic after Iran said it had closed the waterway again earlier this week.

Thirteen people died and dozens were injured in an explosion at Qatar's massive Ras Laffan liquefied natural gas complex, which occurred as workers were restarting operations that had been halted following an Iranian attack in March.

The Saudi index closed unchanged.

Brent crude fell $1.46, or 1.8 percent, to $79.11 a barrel by 11:27 GMT.

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