Major stock markets in the Gulf advanced in early trade on Tuesday with risk appetite improving after U.S. President Donald Trump said Iran and Israel had agreed to a ceasefire.
Trump announced a complete ceasefire, potentially ending the 12-day war that saw millions flee Tehran and prompted fears of further escalation in the region.
Saudi Arabia's benchmark index TADAWUL:TASI rose 2.1%, led by a 1.9% rise in Al Rajhi Bank TADAWUL:1120 and a 2.1% increase in the country's biggest lender Saudi National Bank TADAWUL:1180.
Elsewhere, recently-listed Flynas TADAWUL:4264 surged more than 7% to 79.80 riyals.
However, oil behemoth Saudi Aramco TADAWUL:2222 declined 1.7%, while fertilizers firm SABIC Agri-Nutrients Company TADAWUL:2020 retreated 1.1%.
Oil prices hit their lowest in two weeks after Israel agreed to Trump's proposal, alleviating worries of supply disruptions in the Middle East, a major oil-producing region.
Brent crude futures ICEEUR:BRN1! were down $3.82, or 5.3%, at $67.66 a barrel at 0645 GMT.
Dubai's main share index DFM:DFMGI jumped 3.1% - its biggest intraday rise since mid-December if the gains hold - buoyed by a 4.7% rise in blue-chip developer Emaar Properties DFM:EMAAR.
Among other gainers, budget airliner Air Arabia DFM:AIRARABIA soared 7.2% - its biggest single-day rise in over three years if the gains persist.
Israel has agreed to Trump's proposal for a ceasefire with Iran after it achieved its goal of removing Tehran's nuclear and ballistic missile threat, Prime Minister Benjamin Netanyahu said in a statement posted by his office on Tuesday.
In Abu Dhabi, the index ADX:FADGI gained 2.2%, led by a 8.3% leap in Aldar Properties ADX:ALDAR.
The benchmark index QSE:GNRI in Qatar climbed more than 2%, with Qatar Islamic Bank QSE:QIBK rising 2.2%.
Qatar reopened its airspace after a brief suspension, its civil aviation authority said early on Tuesday, following a missile attack by Iran on an American air base in Qatar on Monday that caused no injuries.