DUBAI: Major stock markets in the Gulf were subdued on Thursday, led by the Saudi index, amid rising geopolitical tensions in the region, while negotiations on a ceasefire plan for the Gaza were set to continue in Cairo.

Israeli forces massed tanks and opened fire close to built-up areas of Rafah, residents said, after US President Joe Biden vowed to withhold weapons from Israel if its forces launch a major invasion of the southern Gaza city.

Saudi Arabia’s benchmark stock index dropped 1.4%, with all of its constituents posting losses, led by utilities, consumer staples and materials stocks.

ACWA Power declined 7.4% and Saudi Arabian Mining slipped 2.7%. Retal Urban Development Co, however, surged 5.3%, the sharpest intraday rise since mid-December 2022 after the developer posted a 50% increase in its first-quarter net profit.