Major Gulf stock markets were mixed early on Monday as investors weighed subdued ‍oil prices against expectations ‍of more Federal Reserve interest rate cuts next year.

Attention ​in the holiday-shortened week will centre on the minutes from the Federal Reserve's ⁠latest meeting, due out on Tuesday.

The U.S. central bank lowered rates earlier ⁠this month ‌and signalled only one additional cut next year, though market participants are betting on at least two more. Monetary ⁠policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.

Saudi Arabia's benchmark index gained 0.3%, as oil giant Saudi Aramco rose 0.5% ⁠and Saudi National Bank, the ​country's biggest lender by assets, increased 0.3%.

The Qatari index fell 0.3%, with Qatar Islamic ‍Bank losing 0.7%.

Oil prices were up on the day as investors kept a close ​eye on talks on a potential deal to end the war in Ukraine, and on developments in the Middle East that could disrupt supply.

But Brent is down about 18% on the year, as rising crude output raised the prospect of an oil glut heading into next year. Lower prices and disruptions to crude exports impact fiscal balances in countries reliant on oil income.

While supply disruptions have helped oil ⁠prices rebound in recent sessions from their ‌near five-year low on December 16, they are on track for their steepest annual decline since 2020.

In Abu Dhabi, the index ‌edged 0.1% ⁠higher.

Dubai's main share index eased 0.1%, with blue-chip developer Emaar Properties losing 1.1%.

(Reporting ⁠by Ateeq Shariff in Bengaluru; Editing by Andrew Heavens)