Most stock markets in the Gulf ended lower on Sunday in response to Friday's fall in oil prices amid thin holiday-season trading.

Oil prices - a catalyst for the Gulf's financial markets - settled more than 2% lower on Friday as investors weighed a looming global supply glut, while also keeping an eye on Ukraine peace deal talks on Sunday between Ukrainian President Volodymyr Zelenskiy and U.S. President Donald Trump.

Despite a rebound fuelled by recent supply issues from the December 16 near-five-year lows, oil is on pace for its biggest annual loss since 2020, with Brent crude down 19% year-to-date as increased production sparks worries of an impending oversupply next year.

Saudi Arabia's benchmark index <.TASI> dropped 1%, with Al Rajhi Bank <1120.SE> losing 1.1% and oil behemoth Saudi Aramco <2222.SE> retreating 0.8%.

Lower oil prices and disruptions to crude exports impact fiscal balances in countries reliant on oil income.

In Qatar, the index <.QSI> fell 0.4%, with the Gulf's biggest lender Qatar National Bank <QNBK.QA> dropping 1.1%.

Outside the Gulf, Egypt's blue-chip index <.EGX30> gained 0.9%, with Telecom Egypt <ETEL.CA> rising 2.2%.

Egypt’s central bank announced a 100 basis point cut to its overnight interest rates on Thursday, according to a statement from the monetary policy committee.

Saudi Arabia

<.TASI> declined 1% to 10,417

Qatar

<.QSI> dropped 0.4% to 10,763

Egypt

<.EGX30> rose 0.9% to 41,605

Bahrain

<.BAX> added 0.2% to 2,068

Oman

<.MSX30> was down 0.3% to 5,940

Kuwait

<.BKP> was flat at 9,591

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