Major stock markets in the Gulf advanced in early ​trading on ⁠Wednesday, building on the previous session's gains as optimism over ‌renewed U.S.-Iran peace talks lifts investor sentiment.

The United States said on Wednesday that its ​military had fully halted sea trade to and from Iran, even though President ​Donald Trump suggested ​negotiations with Tehran to end the war could restart this week.

Trump said U.S. and Iranian officials may meet again in Pakistan ⁠within the next two days, while Vice President JD Vance said he felt encouraged by the state of talks, even though last weekend's discussions ended without a breakthrough. Officials in Pakistan and Iran also ​indicated that ‌talks could ⁠soon be back on ⁠track.

Dubai's main share index advanced 1.7%, buoyed by a 1.6% rise in blue-chip ​developer Emaar Properties and a 1.7% increase in ‌top lender Emirates NBD.

Budget airliner Air ⁠Arabia jumped 3.4%.

In Abu Dhabi, the index added 0.3%, with Aldar Properties climbing 1%.

Saudi Arabia's benchmark index gained 0.4%, with Saudi Arabian Mining Company trading 1.7% higher.

Elsewhere, oil major Saudi Aramco edged 0.2% higher.

Brent crude futures rebounded 1% to $95.77 a barrel after slumping nearly 5% overnight to below $100.

Separately, the International Monetary Fund said on Tuesday that growth in the Middle East and North Africa will slow sharply ‌this year as oil exporters face fallout from the ⁠Iran war.

The Qatari index rose 0.4%, led by ​a 0.7% rise in the Gulf's biggest lender Qatar National Bank .

The Gulf state denied any talks with Iran over payments to halt attacks, ​saying its ‌demands were instead being conveyed through Pakistan and the ⁠United States, spokesperson Majed Al-Ansari ​said.

(Reporting by Ateeq Shariff in Bengaluru; Editing by Neil Fullick)