Major stock markets in the Gulf rose in early trade on Thursday following Israel’s agreement to a ceasefire deal with Lebanon’s Hezbollah group under a deal brokered by the US and France.

The agreement, a rare diplomatic feat in a region racked by conflict, ended the deadliest confrontation between Israel and the Iran-backed militant group in years.

However, Israel is still fighting the Palestinian militant group Hamas in the Gaza Strip.

Saudi Arabia’s benchmark index gained 0.3%, with Al Rajhi Bank rising 0.6% and the country’s biggest lender Saudi National Bank increasing 0.7%.

Dubai’s main share index added 0.3%, with Dubai Electricity and Water Authority advancing 2.4%.

Separately, Talabat, one of the largest food ordering businesses in the Middle East, is set to be the largest initial public offering (IPO) in the United Arab Emirates (UAE) this year after parent firm Delivery Hero DHER.DE on Wednesday announced it had increased the offering.

Most Gulf bourses in red ahead of US inflation data

The IPO on the Dubai Financial Market (DFM) could raise as much as $2 billion if priced at the top of its indicative price range of 1.5-1.6 dirhams per share.

In Abu Dhabi, the index rose 0.4%.

Meanwhile, oil prices were steady as worries over Middle East supply disruptions eased after a ceasefire deal between Israel and Hezbollah, with investors focusing on this weekend’s OPEC+ meeting to discuss oil output policy.

OPEC+, which pumps about half the world’s oil, will meet on Sunday.

Two sources from the producer group told Reuters on Tuesday that members have been discussing a further delay to a planned oil output hike due to have started in January.

The Qatari benchmark edged 0.1% higher, helped by a 1.5% rise in telecoms firm Ooredoo.