DUBAI: Most stock markets in the Gulf ended higher on Thursday, helped by hopes for a potential ceasefire deal between Israel and Hezbollah.

Lebanon’s prime minister expressed hope on Wednesday that a ceasefire deal with Israel would be announced within days as Israel’s public broadcaster published what it said was a draft agreement providing for an initial 60-day truce.

The push for a ceasefire for Lebanon is taking place alongside a similar diplomatic drive to end hostilities in Gaza. In Qatar, the index gained 0.6%, led by a 0.8% rise in the Gulf’s biggest lender Qatar National Bank and a 3.3% jump in Qatar Navigation.

The Abu Dhabi index closed 0.4% higher, with conglomerate International Holding gaining 0.7%.

Saudi Arabia’s benchmark index gave up early gains to conclude higher.

Oil prices — a catalyst for the Gulf’s financial markets — stabilised after rallying the previous day on stronger-than-expected US fuel demand and reports that producer group OPEC+ could delay a planned output increase.