Mideast Stocks: Gulf Stocks End Mixed as US-Iran Tensions Linger

Gulf stock markets ended mixed on Sunday, with traders treading carefully against the backdrop of an escalating standoff between Washington and Tehran. 

Iran has pledged to counter crippling U.S. sanctions while threatening a "painful response" to any further aggression. 

Six months after initial U.S.-Israeli strikes, the conflict remains at a stalemate as diplomatic peace efforts stall following the collapse of a June ceasefire.

 Meanwhile, tit-for-tat military action has resumed after a brief July lull, with U.S. Central Command confirming it struck three Iranian tankers on Saturday in retaliation for ballistic missile attacks on two U.S. Navy warships. 

Saudi Arabia's benchmark index edged 0.3% higher, bolstered by heavyweight lenders, as Al Rajhi Bank gained 0.7% and Saudi National Bank climbed 1.1%. In Qatar, the index lost 0.3%, hit by a 0.7% fall in Qatar Islamic Bank . 

Outside the Gulf, Egypt's blue-chip index advanced 0.7%, led by a 2.2% rise in Talaat Moustafa Group Holding . 

Saudi rose 0.3% to 11,069 Arabia Qatar eased 0.3% to 9,734 Egypt gained 0.7% to 56,676 Bahrain down 0.1% to 1,937 Oman was flat at 7,632 Kuwait lost 0.2% to 9,227.