Most stock markets in the Gulf were subdued in early trade on Monday after a decline in oil prices, although the increased likelihood of a September rate cut in the US capped further losses.

Crude prices - a catalyst for the Gulf’s financial markets - slipped as the prospect of a ceasefire deal in Gaza eased geopolitical tensions in the Middle East, while investors assessed potential disruptions to US energy supplies from Tropical Storm Beryl.

Saudi Arabia’s benchmark index lost 0.2%, led by a 2% fall in aluminum products maker Al Taiseer Group and a 1.4% decline in ACWA Power Co.

Oil giant Saudi Aramco was flat in choppy trade. The Qatari index was down 0.1%, with diversified maritime and logistics firm Qatar Navigation retreating 1.5%.

In Abu Dhabi, the benchmark index declined 0.3%, weighed down by a 0.3% fall in Qatar National Bank, the country’s biggest lender.

Most Gulf markets gain on US rate cut bets

Dubai’s main share index added 0.2%, helped by a 0.6% rise in top lender Emirates NBD.

Separately, the number of homes worth $10 million or more that were sold in Dubai held steady in the first-half of the year despite a drop in listings, an industry report showed on Monday, as demand from the international ultra-rich stayed strong.

Meanwhile, a slowdown in US jobs on Friday added further to the case for a September rate cut by the Federal Reserve.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed’s decisions as most regional currencies are pegged to the US dollar.

US inflation is easing and the job market has returned to the “tight but not overheated” situation seen before the COVID-19 pandemic threw the US economy into disarray, the Fed said on Friday.