Major stock markets in the Gulf fell in early trade on Tuesday in the absence of fresh catalysts, although the Saudi index bucked the trend to trade higher.

The Qatari index dropped 1.2% and was on course to snap eleven sessions of gains, weighed down by a 2.8% decline in Qatar Islamic Bank and a 3.2% decrease in Commercial Bank.

In Abu Dhabi, the index lost 0.2%.

Dubai’s main share index eased 0.1%, with blue-chip developer Emaar Properties losing 1.4%.

Saudi Arabia’s benchmark index gained 0.2%, with the country’s biggest lender Saudi National Bank rising 1.8% and oil giant Saudi Aramco up 0.2%.

Oil prices - a catalyst for the Gulf’s financial markets - jumped 1.5% in the first session of the New Year due to potential supply disruptions in the Middle East after a naval clash in the Red Sea.

US helicopters repelled an attack on Sunday by Iran-backed Houthi on a Maersk container vessel in the Red Sea, sinking three Houthi ships and killing 10 militants.

Most Gulf bourses gain on US rate cut bets

Hopes for strong holiday demand and economic stimulus in China, the top crude importer, also supported oil.

Separately, Saudi Arabia’s deadline for foreign firms to establish their regional headquarters in the kingdom or lose out on hundreds of billions of dollars in government contracts went into effect on Monday, as did several exceptions to the rule.