Stock markets in the Gulf largely ended in ​positive territory on ⁠Tuesday, with Dubai leading the advance, as investors looked beyond regional geopolitical concerns and ‌reassessed their broader outlook.

Dubai's main share index reversed early losses to close 4.1% higher, with the ​index narrowing its losses since the start of the conflict to 15.3%. Iran renewed its attacks on ​the United ​Arab Emirates, as the U.S.-Israeli war on Iran entered its third week with no signs of easing.

The Strait of Hormuz remained largely closed, pushing oil prices ⁠about 3% higher and deepening concerns over inflation. The fresh strikes led to a temporary shutdown of airspace in the UAE. A drone also hit an oil facility in Fujairah, a key port for Emirati oil exports, for a second consecutive day, while operations at ​the Shah ‌gas field remained ⁠suspended following a drone ⁠attack.

U.S. President Donald Trump had said on Monday he was surprised by Iran's retaliatory attacks on neighboring ​countries, including Qatar, Saudi Arabia, the UAE, Bahrain, and Kuwait.

But ‌Gulf stock markets rebounded on Tuesday on strong ⁠real estate gains. Emaar Properties and Emaar Development advanced after S&P reaffirmed the sector's resilience despite geopolitical tensions, said Daniel Takieddine, co-founder and CEO, Sky Links Capital Group.

In Abu Dhabi, the index gained 1%, with Aldar Properties climbing 6%.

Earlier this month, the Dubai and Abu Dhabi exchanges introduced a temporary 5% daily downside limit on listed securities and suspended trading on March 2 and March 3, as part of broader measures to curb volatility and maintain orderly market conditions.

According to Takieddine, improving global sentiment, solid local fundamentals ‌and hopes of a Strait of Hormuz resolution could support further ⁠gains in both markets.

"However, a full recovery will largely ​depend on the de-escalation of geopolitical tensions in the region," he said.

Qatar's benchmark index rose 0.6%, while Oman's gained 0.2%.

Bahrain's index edged up 0.2%, whereas Boursa Kuwait slipped 0.6%.

Saudi Arabia's stock ​market was ‌closed for the Eid holidays.

Outside the Gulf, Egypt's blue-chip index ⁠jumped 1.9%, with Commercial International Bank advancing 2%.

(Reporting ​by Ateeq Shariff in Bengaluru; Editing by Eileen Soreng and Jonathan Ananda)