Most major Gulf equity markets closed lower on Wednesday, as persistent uncertainty over the ​durability of the ⁠U.S.-Iran accord coupled with expectations of higher interest rates weighed on investor sentiment.

The ‌two countries, which concluded a first round of negotiations in Switzerland on Monday, gave conflicting accounts of ​key elements of the framework agreement signed last week to end the war, including financial incentives for ​Iran, control ​of the Strait of Hormuz and Israel's parallel war in Lebanon.

U.S. President Donald Trump said on Tuesday that Iran had agreed to nuclear inspections into "infinity," while Tehran ⁠denied making any such concession, raising doubts about the viability of the fragile peace deal.

Saudi Arabia's benchmark index fell 0.3%, with Al Rajhi Bank losing 1.4%. However, Umm Al Qura for Development and Construction Co surged 10% and Dar Al Arkan Real Estate Development Co ​advanced 5.8%. The kingdom's ‌real estate authority ⁠has begun accepting ⁠applications for foreign real estate ownership, it said in a statement on Tuesday, part of a ​push to attract foreign investment in the kingdom.

Dubai's main share index ‌edged 0.1% higher, helped by a 3.5% rise in ⁠toll operator Salik Company. In Abu Dhabi, the index lost 0.3%. Improving Middle East geopolitics may support GCC equities, helped by rising Strait of Hormuz traffic and stronger export flows despite lower oil prices. However, possible friction in U.S.-Iran nuclear talks could keep sentiment cautious and markets volatile, said Milad Azar, market analyst at XTB MENA.

The Qatari index retreated 0.8%, weighed down by a 1.8% slide in the region's biggest lender Qatar National Bank . Markets are now pricing in three Federal Reserve rate hikes this year, a sharp ‌shift from expectations of just one before last week's policy meeting, ⁠according to the CME FedWatch Tool.

Monetary policy shifts in ​the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar. Outside the Gulf, Egypt's blue-chip index was down 0.1%.

  • Saudi Arabia fell 0.3% to 11,007
  • Abu Dhabi down 0.3% to ​9,993
  • Dubai added 0.1% ‌to 6,112
  • Qatar dropped 0.8% to 10,321
  • Egypt eased 0.1% to 51,711
  • Bahrain rose 0.3% to 2,042
  • Oman gained ⁠0.6% to 7,358
  • Kuwait lost 0.2% to 9,146

(Reporting ​by Ateeq Shariff in Bengaluru; Editing by Jan Harvey and Jonathan Ananda)