Major stock markets in the Gulf were mixed in early trade on Tuesday on weakening oil even as tensions escalated in the region and as investors braced for third-quarter earnings.

Saudi Arabia’s benchmark index dropped 0.1%, hit by a 0.9% fall in ACWA Power and a 0.6% fall in the country’s biggest lender, Saudi National Bank.

Elsewhere, oil giant Saudi Aramco eased 0.4%. Oil prices - a catalyst for the Gulf’s financial markets -slid as much as $3 to a near two-week low during Asian trade on the back of a weaker demand outlook and after a Washington Post report said Israel is willing not to strike Iranian oil targets, easing fears of a supply disruption.

China’s customs data showed that September oil imports were down from a year earlier, as plants curbed purchases because of weak domestic fuel demand and narrowing export margins.

In Abu Dhabi, the index lost 0.3%.

Dubai’s main share index added 0.2%, with blue-chip developer Emaar Properties advancing 1.3%.

The Qatari benchmark gained 1%, led by a 1.1% rise in the Gulf’s biggest lender, Qatar National Bank. Among other gainers, Islamic lender Masraf Al Rayan added 0.8% a day after reporting an increase in nine-month net profit.

Gulf markets end mixed on regional conflict, ahead of earnings

Israel launched its offensive against Hamas after the militant group’s Oct. 7 attack on Israel, in which 1,200 people were killed and around 250 taken hostage to Gaza, by Israeli tallies.

More than 42,000 Palestinians have been killed in the offensive so far, according to Gaza’s health authorities.