Major Gulf stock markets rose slightly in early trading on Thursday ​after Israel ⁠and Lebanon agreed to implement a ceasefire, boosting ‌optimism for a wider deal to end the U.S. war with ​Iran even as tensions simmered.

The Israel-Lebanon ceasefire is contingent ​on a complete cessation ​of fire from the Iran-aligned Hezbollah militia and the evacuation of all its operatives from ⁠the South Litani Sector, a joint statement released by the U.S. State Department said following negotiations in Washington.

U.S. President Donald Trump suggested on Wednesday that there could ​be ‌progress in negotiations ⁠with Iran ⁠as soon as this weekend.

Earlier, Iran struck Kuwait, damaging its ​airport and injuring dozens while the ‌U.S. military carried out strikes ⁠near the Strait of Hormuz.

Markets stayed cautious as attention returned to developments involving Iran and the Strait of Hormuz after a period of easing tensions and perceived progress in negotiations, said Ahmad Assiri, research strategist at Pepperstone.

Saudi Arabia's benchmark index added 0.1% in choppy trade.

Dubai's main share index gained 0.3%, with sharia-compliant lender ‌Dubai Islamic Bank rising 1.3% and toll operator ⁠Salik adding 1.3%.

In Abu Dhabi, the index ​was up 0.2%.

The Qatari index added 0.3%, with petrochemical maker Industries Qatar putting on 0.3%.

Meanwhile, Brent futures were ​down 87 ‌cents, or 0.89%, at $96.92 a barrel by ⁠0458 GMT.

(Reporting by ​Ateeq Shariff in Bengaluru; Editing by Harikrishnan Nair)