Gulf markets declined as tensions between the US and Iran continued.

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From Atiq Sharif

- Most Gulf stock markets closed lower on Monday as investor anxiety persisted following tit-for-tat strikes between the United States and Iran in recent days, despite the two countries agreeing to halt any further attacks.

These diplomatic efforts in the Middle East come after several days of tit-for-tat strikes, which erupted after an Iranian missile hit a cargo ship in the Strait of Hormuz last week. Since then, the two sides have been trading accusations of violating a temporary ceasefire.

Oil prices rose due to uncertainty surrounding the continuation of the agreement to end the war, but crude later gave up most of its war-related gains as markets reassessed the likelihood of easing supply-related pressures.

The Saudi index fell 1.1 percent, with most listed stocks posting losses. Shares of National Commercial Bank, the kingdom's largest bank, declined 2.2 percent after it announced its intention to redeem an additional $1.25 billion in Tier 1 sukuk.

Saudi Aramco's stock fell 1.8 percent, one day after ending an eight-session losing streak.

Meanwhile, Aramco resumed crude oil loading operations at the Ras Tanura port west of the Strait of Hormuz on Friday after a nearly four-month hiatus, as oil producers increased their output and exports.

Dubai's index fell 0.4 percent, with Emirates NBD losing 1.1 percent and Air Arabia shares declining 1.1 percent.

In Abu Dhabi, the index fell 0.4 percent, weighed down by a 1.1 percent decline in Abu Dhabi Islamic Bank and a 1.7 percent drop in First Abu Dhabi Bank.

George Pavel, General Manager of Naga.com in the Middle East, said, "The uncertainty in the Middle East may continue to negatively impact trading activity in the near term, but the UAE's strong economic fundamentals and robust corporate earnings could help mitigate downside risks and support a recovery once geopolitical concerns begin to subside."

The Qatari index fell 0.4 percent, with energy and real estate stocks leading the losses. Shares of Qatar Gas Transport Company dropped 2.3 percent, while shares of Industries Qatar declined 0.8 percent.

Outside the Gulf region, Egypt's blue-chip index fell 1 percent, weighed down by a 2.3 percent drop in Commercial International Bank shares and a 2.9 percent decline in Eastern Company shares.