Peace hopes drive Gulf markets: Stock prices soar.

The stock markets of the Gulf states showed an upward trend on Thursday, driven by budding hopes for a possible ceasefire between Israel and Hezbollah. The Lebanese Prime Minister expressed on Wednesday the expectation that a corresponding agreement could be announced within a few days. A draft of a 60-day ceasefire was already published by an Israeli broadcaster. This endeavor for a ceasefire in Lebanon parallels similar diplomatic efforts to end the fighting in the Gaza Strip. The main index in Saudi Arabia increased by 0.2%, led by ACWA Power Company, whose shares rose by 3.9%. The aluminum manufacturer Al Taiseer Group also recorded a slight increase of 0.2%. In Dubai, the main stock index climbed by 0.1%, fueled by a 2.4% gain in the Emirates Central Cooling Systems Corporation. The positive market sentiment was further buoyed by the announcement of a new large order from the Saudi Arabian airline Riyadh Air, which has ordered 60 Airbus A321 series aircraft. The Qatari main index rose by 0.4%, driven by a 1.9% increase in Industries Qatar. Oil prices, a significant driver of financial markets in the Gulf, continued their upward trend, supported by the unexpected increase in US fuel demand and a surprising decline in crude oil and gasoline inventories. In Abu Dhabi, however, the stock index fell by 0.2%, while positive signals from Chinese production indicated a recovery in the industrial economy.