Most major stock markets in the Gulf rose in early trade on Tuesday ahead of economic data expected to offer clues to the next steps by the US Federal Reserve, although widening conflict in the region weighed on sentiments.

The US Commerce Department will announce third-quarter gross domestic product on Thursday, while the Personal Consumption Expenditures (PCE) report, the US central bank’s preferred inflation gauge, is due on Friday.

Monetary policy in the six-member Gulf Cooperation Council is usually guided by Fed policy decisions because most regional currencies are pegged to the US dollar.

Saudi Arabia’s benchmark index rose 0.5%, on course to snap four sessions of losses, with Elm Company advancing 2.4% and Etihad Atheeb Telecommunication gaining 1.4%.

Saudi National Bank added 1%, after reporting a 6% rise in third-quarter net profit from a year earlier. However, Riyal Investment & Development Co plunged as much as 28% in its debut on parallel market.

Gulf bourses drop amid hawkish Fed tone, Mideast conflict

Dubai’s main share index gained 0.8%, with Emirates Central Cooling Systems Corp climbing 5.5%. The Abu Dhabi index was up 0.2%.

Prices of oil, which fuel the Gulf economy, recovered some of the previous day’s losses as markets worried that the Israel-Hamas war could escalate into a wider conflict in the oil-exporting region.

In Qatar, the index retreated 1.2%, as almost all its constituents were in the negative territory including Qatar Islamic Bank, which slid 2.1%.

Elsewhere, petrochemical firm Mesaieed Petrochemical Holding Co tumbled 4.6%, hitting its lowest in over three years, following a steep fall in nine-month net profit.

Israel pounded hundreds of targets in Gaza from the air on Monday as its soldiers fought Hamas militants during raids into the besieged Palestinian strip, where deaths are soaring and civilians are trapped in harrowing conditions.

Oman’s OQ Gas Networks, the pipeline business of state oil giant OQ, jumped 14% in its debut.