Most stock markets in the Gulf were up in early trading on Tuesday as oil prices rose, while escalating tensions in the Middle East weighed on investor sentiment.

Oil prices, a catalyst for the Gulf's financial markets, edged up 0.5% with Brent LCOc1 trading at $72.17 a barrel by 0740 GMT.

Saudi Arabia's benchmark stock index .TASI moved up 0.2%, driven by gains in most sectors. Al Khaleej Training 4290.SE surged 4% after the company signed a non-binding memorandum of understanding to operate an educational complex in Jeddah.

Malath 8020.SE and Liva 8280.SE rose 1.7% and 0.2% respectively, after the insurers said in a statement they have agreed, on a non-binding and preliminary basis, that Liva would be merged into Malath.

United International Holding Company 4083.SE consumer finance services provider surged as much as 30% on its market debut to 171.6 riyals compared to its IPO price of 132.

Meanwhile, Saudi Arabia's non-oil business sector grew in November at the fastest rate since July 2023 thanks to robust demand.

The Qatari benchmark index .QSI fell 0.1% with most sectors in negative territory. Industries Qatar IQCD.QA lost 0.3% and Qatar Fuel QFLS.QA slipped 0.5%.

Energy giant QatarEnergy signed on Monday a long-term sales and purchase agreement with Shell to supply it with LNG for delivery to China.

** Markets in the United Arab Emirates were closed for a public holiday.

(Reporting by Md Manzer Hussain, editing by Ed Osmond)