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DUBAI: Stock markets in the Gulf were mixed on Sunday amid strong oil prices as investors awaited clues on interest rate policy after the US Federal Reserve’s favored inflation reading showed moderating prices.

Oil prices - a catalyst for the Gulf’s financial markets - settled at their highest in nearly two months on Friday, helped by higher demand expectations while Middle East supply concerns added support.

Saudi Arabia’s benchmark index closed 0.8% higher, snapping previous session of losses, with all sectors in positive territory.

Saudi Arabian media firm MBC Group jumped 7.5% and SAL Saudi Logistics Services Co climbed 4.4%.

Among the gainers, the world’s largest Islamic lender, Al Rajhi Bank surged 3.4%, the highest rise since Dec 14.

The Qatari index dipped slightly to trade flat. Losses in energy, finance, and communication sectors offset gains in industry and utilities. Commercial Bank and Qatar Gas Transport dropped 1.3% each while Industries Qatar and Qatar Electricity and Water each added 0.6%.

The US Commerce Department data showed on Friday that US price pressures moderated in December, with markets hoping the data will keep the Fed on track to begin rate cuts by the middle of this year.

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