(Updates to move close prices)

By Ateeq Shariff

Oct 9 - Most stock markets in the Gulf ended higher on

Thursday supported by hopes of further U.S. interest rate cuts

this year and a ceasefire deal in Gaza that could ease

geopolitical tensions in the region.

Saudi Arabia's benchmark index rose 0.2%, led by a

0.8% rise in Al Rajhi Bank and a 1.1% increase in

Saudi Arabian Mining Company.

Market participants cheered Israel and Hamas agreeing to the

first phase of U.S. President Donald Trump's plan for Gaza on

Wednesday, a ceasefire and hostage deal that could open the way

to ending a bloody two-year-old war that has upended the Middle

East.

The Gaza ceasefire agreement offers a window of opportunity

for significant economic and investment transitions in the

Middle East. It presents a chance to rebuild regional confidence

and redirect capital toward growth and development rather than

caution and risk aversion, said Rania Gule, senior market

analyst at XS.COM.

"While the current phase allows investors to move tactically

toward higher-risk assets, prudence and disciplined portfolio

management remain essential to ensure that this opportunity is

leveraged safely and sustainably."

The Qatari index gained 0.3%, with telecom firm

Ooredoo advancing 1.6%.

Federal Reserve officials agreed that risks to the U.S. job

market were high enough to warrant a rate cut, but remained wary

amid stubborn inflation, per minutes of the September 16-17

meeting released on Wednesday.

Markets are pricing in a 25-basis-point cut each in October

and December, with probabilities of 93% and 78%, respectively,

according to the CME FedWatch tool.

The Fed's stance carries heavy clout in the Gulf, where most

currencies are pegged to the U.S. dollar, anchoring regional

monetary policy.

In Abu Dhabi, the index inched 0.1% higher.

However, gains were limited by losses in Abu Dhabi National Oil

Company's (ADNOC) listed subsidiaries, including ADNOC Drilling

, which declined 3.6%.

Abu Dhabi state oil giant ADNOC said on Wednesday that its

six publicly listed subsidiaries will distribute 158 billion

dirhams ($43.02 billion) in dividends by 2030.

** Egypt was closed for a public holiday

Saudi rose 0.2%

Arabia to 11,583

Abu Dhabi up

0.1%% to 10,143

Dubai was flat

at 5,958

Qatar added 0.3%

to 10,897

Bahrain finished

flat at 1,971

Oman gained 1%

to 5,250

Kuwait lost 0.5%

to 9,302

($1 = 3.6729 UAE dirham)