Major stock markets in the Gulf were mixed in early trade on Thursday as regional tensions escalated, but there were some signs of optimism that the Federal Reserve could still deliver two rate cuts this year.

The Fed kept interest rates steady on Wednesday, as was anticipated, and reiterated its forecast for two quarter-percentage-point rate cuts before the end of the year.

The Fed's decision affects monetary policy in the Gulf where most currencies, including the Saudi riyal, are pegged to the U.S. dollar.

Saudi Arabia's benchmark index added 0.2%, helped by a 1.4% rise in ACWA Power Company and a 0.2% increase in oil giant Saudi Aramco.

Oil prices, which are a catalyst for the Gulf's financial markets, rose on Thursday, boosted by a strong outlook for demand in the United States after fuel inventories fell more than expected, and a weaker U.S. dollar.

Dubai's main share index gained 0.3%, with top lender Emirates NBD rising 0.8%, while blue-chip developer Emaar Properties was up 0.4%.

In Abu Dhabi, the index fell 0.4%, hit by a 0.2% fall in Alpha Dhabi Holding.

Israel launched a new ground operation in Gaza on Wednesday after a ceasefire that had broadly held since January collapsed. Israel and Palestinian militant group Hamas accuse each other of breaching the truce.

The Qatari index eased 0.2%, with Qatar Islamic Bank losing 0.4%.

(Reporting by Ateeq Shariff in Bengaluru; Editing by Rachna Uppal)