Major stock markets in the Gulf were mixed in early trade on Thursday amid tensions in the Middle East following the killing of Hamas leader Ismail Haniyeh in Iran, while expectations of rate cuts in the United States lifted investor sentiment.

Haniyeh's death came less than 24 hours after the most senior military commander of Lebanon-based Hezbollah was killed in an Israeli strike in Beirut. The killings fuelled concern that the 10-month-old war in Gaza between Israel and Hamas was turning into a wider Middle East conflict.

Saudi Arabia's benchmark index .TASI eased 0.1%, with aluminium products manufacturer Al Taiseer Group 4143.SE down 0.2%.

The kingdom's real gross domestic product (GDP) shrank 0.4% year-on-year in the second quarter, preliminary data by the government's statistical authority showed on Wednesday, driven by a 8.5% decline in oil activities which has limited overall growth for several quarters.

However, the Saudi share index's losses were limited by a 3% jump in petrochemical maker Saudi Basic Industries Corp 2010.SE after the company reported an 85% surge in second-quarter profit.

Dubai's main share index .DFMGI gained 0.4%, with blue-chip property developer Emaar Properties EMAR.DU rising 1.5% and sharia-compliant lender Dubai Islamic Bank DISB.DU gaining 1.7%.

In Abu Dhabi, the main share index .FTFADGI added 0.4%.

The U.S. Federal Reserve held interest rates steady overnight but opened the door to a cut in September.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.

The Qatari benchmark .QSI fell 0.3%, hit by a 1.1% drop in petrochemical firm Industries Qatar IQCD.QA.

(Reporting by Ateeq Shariff in Bengaluru; Editing by Emelia Sithole-Matarise)