​Most Gulf stock markets ⁠fell on Tuesday, with the Qatar benchmark extending its decline after the country halted liquefied natural gas ‌production amid an escalating air war in the region.

Israel broadened its campaign with new strikes on Iran and Hezbollah, while Tehran ​launched missiles and drones toward Israel, several Gulf states and a British air base in Cyprus, raising concerns of a prolonged conflict.

Qatar's ​state-owned QatarEnergy, ​82% of whose clients are in Asia, was set to declare force majeure on its LNG shipments after Iranian drone attacks on facilities in the sprawling Ras Laffan complex.

Qatar's benchmark index traded 0.9% ⁠lower, pressured by a 2.5% drop in Qatar Islamic Bank. The country condemned Iranian attacks on its territory and said, in a letter to the U.N. Secretary-General and the president of the Security Council on Monday, that it reserved the right to retaliate.

In Muscat, the index retreated more than 1% in broad declines, while the Kuwaiti index ​reversed early losses to ‌gain 0.6%.

Gulf Cooperation ⁠Council sovereign wealth funds ⁠can play a pivotal role in supporting local equity markets by boosting liquidity and deploying additional capital to strengthen investor sentiment.

This ​is an ideal moment to channel that support through fund-of-funds structures, said Samer ‌Hasn, senior market analyst at XS.com.

Meanwhile, oil prices rose for a ⁠third straight day on Tuesday as threats to shipping through the Strait of Hormuz heightened fears of supply disruptions. Iran's Revolutionary Guards commander said on Monday that the strait was closed and warned that Iran would set any ship attempting to pass on fire, Iranian media reported.

Saudi Arabia's benchmark index rose 0.5%, lifted by a 2.2% climb in oil major Saudi Aramco, while petrochemical maker Saudi Basic Industries Corp, in which Aramco owns 70%, added 3.1%.

The Saudi energy index advanced 2.1%. Among individual stocks, Saudi budget carrier flynas extended declines to a third session, losing 2.8%, as air travel in the region was hit.

According to Hasn, the Saudi market ‌is showing unexpected resilience despite the rapid and sudden spread of war, which ⁠is affecting various essential infrastructure sectors across the GCC.

"Investors appear to be banking ​on the hope that the conflict will not be prolonged, alongside expectations of extensive Saudi government support for the affected sectors."

Elsewhere, Bahrain's index was little changed. Meanwhile, UAE's Securities and Commodities Authority said the Abu Dhabi Securities Exchange and the ​Dubai Financial Market would ‌remain closed on Tuesday, citing its supervisory and regulatory mandate over the country's capital ⁠markets. They were closed on March 2 ​too.

(Reporting by Ateeq Shariff in Bengaluru; Editing by Sumana Nandy, Kirsten Donovan and Harikrishnan Nair)