Mideast Stocks: Gulf Stocks Mixed As Investors Weigh US-Iran Mediation Hopes, Security Risks

Major Gulf stock markets were mixed early on Tuesday, as investors weighed reports of U.S.-Iran mediation against fresh attacks and Houthi threats to impose a naval blockade on Saudi Arabia.

Dubai's main share index added 0.3%, with blue-chip developer Emaar Properties gaining 1.3% and toll operator Salik rising 1.6%.

In Abu Dhabi, the index rose 0.5%.

Saudi Arabia's benchmark index fell 0.3%, hit by a 1.6% slide in Al Rajhi Bank and a 0.5% decrease in oil major Saudi Aramco.

Brent crude futures fell 1.1% to $88.26 per barrel by 0630 GMT.

Yemen's Iran-aligned Houthis threatened a naval blockade of Saudi Arabia, risking a wider conflict and greater disruption to energy supplies and trade. The move came even as Tehran and Washington signalled interest in renewed diplomacy, with Iran saying mediators had presented new proposals but giving no details.

Saudi Arabia on Monday condemned what it described as allegations by Yemen's Iran-aligned Houthis that the kingdom was besieging the Yemeni people, after the group announced it would impose a maritime blockade on Saudi Arabia.

The Qatari index eased 0.1%, with telecom operator Ooredoo losing 1.5%.