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Most stock markets in the Gulf ended higher on Tuesday recovering some of their recent losses triggered by worries the region could be on the brink of a broader Middle East war.

Fighting in the region intensified after Iran-backed Hezbollah fired rockets at Israel’s third-largest city, Haifa, and Israel looked poised to expand its offensive into Lebanon, a year after the Hamas attack that sparked Israel’s ongoing war in Gaza.

The downturn in Gulf markets began after Iran launched a missile barrage on Israel on Oct. 1. Israel has sworn to retaliate and is weighing its options, with Iran’s oil facilities considered a possible target.

Saudi Arabia’s benchmark index advanced 1%, with Al Rajhi Bank rising 1.8% and the country’s biggest lender Saudi National Bank increasing 2.8%.

Elsewhere, perfumer Almajed 4 Oud Co surged 30% on the second day after its debut on the Tadawul on Monday.

The Saudi Exchange allows 30% fluctuation limits during the first three days of trade.

Iran’s Foreign Minister Abbas Araqchi will visit Saudi Arabia and other Middle East countries starting on Tuesday to discuss regional issues and stopping Israel’s “crimes” in Gaza and Lebanon, Iran’s state media reported.

Gulf markets fall

Dubai’s main share index gained 0.8%, with blue-chip developer Emaar Properties closing 3.7% higher.

The Abu Dhabi stock index finished 0.3% higher.

The United Arab Emirates’ cabinet has approved a balanced budget for the 2025 fiscal year with expenditures rising to 71.5 billion dirhams ($19.47 billion), state news agency WAM said in a statement on Tuesday.

The Qatari benchmark added 0.6%, led by a 1.9% rise in the Gulf’s biggest lender Qatar National Bank.

Outside the Gulf, Egypt’s blue-chip index retreated 3%, as almost all its constituents were in negative territory including Commercial International Bank, which was down 1.8%.

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 SAUDI ARABIA     advanced 1% to 12,027
 ABU DHABI        rose 0.3% to 9,172
 DUBAI            added 0.8% to 4,429
 QATAR            gained 0.6% to 10,512
 EGYPT            declined 3% to 30,852
 BAHRAIN          eased 0.1% to 1,999
 OMAN             was up 0.1% to 4,687
 KUWAIT           added 0.5% to 7,571
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