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DUBAI: Most stock markets in the Gulf closed lower on Wednesday amid geopolitical tensions in the region, while investors awaited a key US inflation report due this week for more clarity on the size of a likely September rate cut.

In the Middle East, fighting continued in the Gaza Strip between Israel and Hamas militants, displacing Palestinians, while there were few signs of a concrete breakthrough in ceasefire talks in Cairo. Over the weekend, Israel and Hezbollah bombarded each other with rockets and missiles across the Lebanese border.

United Nations aid operations in the Gaza Strip continued on Tuesday, a day after a senior UN official said humanitarian efforts had ground to a halt because new Israeli evacuation orders forced the shutdown of the main UN operations center.

Saudi Arabia’s benchmark index dropped 0.5%, with aluminium products Al Taiseer Group losing 1.9%, and Al Rajhi Bank declining 1.5%.

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