Major stock markets across the Gulf opened higher on Tuesday following a high-level meeting aimed at reducing military tensions in the region. Senior officials from Saudi Arabia, Turkey, and Pakistan convened with Iranian counterparts in Tehran on Monday. This meeting marked the first direct engagement between Iran and the three nations since the outbreak of a broader conflict involving U.S. and Israeli strikes on Iran, which has since extended into Saudi Arabia and Yemen.

The three countries involved in the talks had signed a mutual defense pact in August, underscoring the significance of the recent diplomatic outreach. Market response was positive, with Saudi Arabia’s benchmark index rising by 0.5 percent, buoyed by a 0.6 percent gain in shares of Al Rajhi Bank, one of the kingdom’s leading financial institutions.

In the United Arab Emirates, Dubai’s primary index increased by 0.6 percent, supported by gains in key real estate companies. Blue-chip developer Emaar Properties climbed 1.8 percent, while Dubai Investments Park’s parent company, DIP Holding, announced plans to raise up to $543 million through an initial public offering. If successful, this would represent the first major listing in the UAE this year. Meanwhile, the Abu Dhabi index edged up by 0.3 percent.

Qatar’s stock market also showed strength, with the Qatari index rising 1 percent. Qatar National Bank, the region’s largest lender, contributed to the gain with a 0.7 percent increase in its share price.

Despite the positive market movements and diplomatic efforts, regional security concerns persisted. The Saudi-led coalition fighting in Yemen reported intercepting and destroying ballistic missiles and drones launched by the Iran-aligned Houthi movement targeting two regions within Saudi Arabia. These developments highlight the ongoing volatility in the Gulf despite recent attempts at dialogue.