Gulf equity indexes mostly ended lower on Tuesday as tension ‍flared between ‍regional oil powers and neighbours Saudi Arabia and the United ​Arab Emirates.

Dubai's main share index retreated 2%, LSEG data showed, while Abu Dhabi's ⁠main index and Saudi Arabia both dropped 1% each.

The Dubai index saw its ​biggest daily decline since June. Blue-chip developer Emaar Properties fell 2.8% and sharia-compliant lender Dubai Islamic Bank lost 2.3%. Among Saudi shares, Saudi Arabian Mining Co slipped 2.6% and Al Rajhi Bank eased 0.3%. Oil giant Saudi Aramco was down 0.3%.

Oil prices - a catalyst for the Gulf's financial markets - were little changed as investors took stock of dented hopes of a Russia-Ukraine peace deal and rising geopolitical tensions in the Middle East around Yemen.

The Qatari index finished flat. Bahrain bucked the ⁠trend with a 0.6% rise after the country ‌announced several fiscal reform measures on Monday.

Outside the Gulf, Egypt's blue-chip index edged 0.1% lower.

  • Saudi Arabia dropped 1% to 10,382
  • Abu Dhabi declined 1% to 9,964
  • Dubai retreated 2% to 6,015
  • Qatar finished ‌flat at 10,794
  • Egypt eased 0.1% ⁠to 41,690
  • Bahrain gained 0.6% to 2,077
  • Oman fell 0.6% to 5,860
  • Kuwait lost 1.3% to 9,444

(Reporting by Ateeq Shariff in Bengaluru ⁠and Federico Maccioni in Dubai; Editing by Kirsten Donovan)