Major stock markets in the Gulf rose in early trade on Monday, helped by the ceasefire deal between Israel and Palestinian militant group Hamas, while investors awaited key policy announcements from Donald Trump's incoming administration.

Hamas released three Israeli hostages and Israel released 90 Palestinian prisoners on Sunday, the first day of a ceasefire suspending a 15-month-old war that has devastated the Gaza Strip and inflamed the Middle East.

Saudi Arabia's benchmark index .TASI gained 0.3%, led by a 2.8% rise in ACWA Power Company 2082.SE and a 0.2% increase in Al Rajhi Bank 1120.SE.

Dubai's main share index .DFMGI added 0.2%, with blue-chip developer Emaar Properties EMAR.DU gaining 0.8%.

Trump, who will be inaugurated later on the day, is widely expected to make a flurry of policy announcements in the first hours of his second term as U.S. President.

The Abu Dhabi stock index .FTFADGI added 0.1%.

However, oil prices fell as expectations of Trump relaxing curbs on Russia's energy sector in exchange for a deal to end the Ukraine war offset concerns of supply disruption from harsher sanctions.

The Qatari benchmark .QSI rose 0.5%, with petrochemical maker Industries Qatar IQCD.QA advancing 1.4% and the Gulf's biggest lender Qatar National Bank QNBK.QA adding 0.3%.

(Reporting by Ateeq Shariff in Bengaluru; Editing by Sumana Nandy)