Most Gulf stock markets inched up in early trade on Tuesday, buoyed by firmer oil prices and growing bets of a U.S. rate cut later this month.

Saudi Arabia's benchmark index edged up 0.1% in choppy trade as stronger oil prices lent support to the oil-sensitive bourse.

Index heavyweights Saudi Arabian Mining and the oil behemoth Saudi Aramco advanced 1.3% and 0.1%, respectively.

Oil - a key catalyst for Gulf markets - rose after OPEC+ announced plans to increase output by less than market participants had anticipated, boosting sentiment across the region.

In the UAE, Dubai's main index added 0.1%, helped by a 0.6% rise in Emirates NBD Bank.

Abu Dhabi index was also up 0.1%, with modest gains in heavyweight stocks helping to partially reverse a recent pullback.

Abu Dhabi Commercial Bank rose 0.9%, rebounding from a 7.5% plunge in the previous session — its steepest single-day drop in over three years — after announcing a 6.1 billion dirhams rights issue priced at a 30% discount.

In contrast, Qatar's benchmark index fell 0.2%, pressured by losses in financials. Qatar National Bank , the region’s largest lender, declined nearly 1%.

Investors continue to keep a close watch on the Fed, with traders fully pricing in a 25-basis-point rate cut and assigning a 10% probability to a jumbo 50-bp cut, according to the CME FedWatch tool.

The Fed's stance carries heavy clout in the Gulf, where most currencies are pegged to the U.S. dollar, anchoring regional monetary policy.

(Reporting by Amna Mariyam in Bengaluru; Editing by Harikrishnan Nair)