Most stock markets in the Gulf ended lower on Monday, with the Dubai index falling for an eighth straight session as the widening conflict in the Middle East hurt sentiments. Israel bombarded Gaza with more air strikes on Monday as its soldiers fought Hamas militants on the ground in raids within the besieged Palestinian enclave.

At least 5,087 Palestinians have been killed in two weeks of Israeli strikes, including 2,055 children, the enclave's health ministry said in an update.

Saudi Arabia's benchmark index declined 1.9%, dragged down by a 4.5% fall in Elm Company and a 0.3% decrease in oil giant Saudi Aramco. Separately, the kingdom said on Monday it was launching an annual Esports World Cup, which will include the most popular games in the world and have the largest prize pool in esports history.

Dubai's main share index gave up early gains to finish 0.6% lower, falling for an eighth session, with top lender Emirates NBD losing 2.1%.

In Abu Dhabi, the index lost 0.3%. The Abu Dhabi bourse remained near last week’s low and could continue to see selling pressures as geopolitical concerns remain while the volatility in oil prices adds to the uncertainty, said George Khoury, Global Head of Education and Research at CFI.

Oil prices - a catalyst for the Gulf's financial markets - slipped as investors continued to focus on the situation in the Middle East, where diplomatic efforts are intensifying in an attempt to contain the military clashes between Israel and the Palestinian Islamist group Hamas.

Outside the Gulf, Egypt's blue-chip index advanced 2%, hitting all-time high, with Misr Fertilizers Production Co jumping 20%.

  • SAUDI ARABIA fell 1.9% to 10,293
  • ABU DHABI lost 0.3% to 9,276
  • DUBAI down 0.6% to 3,730
  • QATAR closed flat at 9,720
  • EGYPT gained 2% to 22,572
  • BAHRAIN eased 0.4% to 1,937
  • OMAN was flat at 4,642
  • KUWAIT declined 0.6% to 7,292

(Reporting by Ateeq Shariff in Bengaluru; Editing by Pooja Desai)