MIDEAST STOCKS-Gulf stocks settle higher as oil prices rise

By Rishab Shaju

May 28 (Reuters) - Most stock markets in the Gulf settled higher on Wednesday, with Saudi Arabia's benchmark index .TASI up 1.24% as oil prices rose and market sentiment improved after U.S. President Trump agreed to delay tariffs on EU products.

Oil prices - a catalyst for stock markets in the Gulf - rose more than 1% with Brent crude futures up 1.5%, to $65.02 a barrel by 1300 GMT.

Helping lift prices was news that the Trump administration would allow Chevron CVX.N to keep its assets in Venezuela but not export oil or expand activities.

Trump also said on Tuesday that the EU's move to set up trade talks was "positive", helping lift sentiment following his threat to impose 50% tariffs on goods from the bloc.

Gains remained limited, however, as markets await an upcoming decision from OPEC+ at the end of the week on an anticipated increase in oil output.O/R

In Saudi Arabia, apparel and accessories retailer Al Hokair 4240.SE was the top gainer on the index, finishing up 5.38%.

"The market could find support as it continues to see strong interest in Saudi IPOs, including Flynas. Successful IPOs could help attract local and international capital to the stock market," said Joseph Dahrieh, Managing Principal at Tickmill.

Dubai's main share index .DFMGI closed up 0.40% with National General Insurance up 9.95%. The index recorded its third consecutive session of gains.

The Abu Dhabi's benchmark index .FTFADGI settled up 0.72%, its highest since March 18, 2024. First Abu Dhabi Bank FAB.AD, the United Arab Emirates' biggest lender, closed up 2.85%.

Analyst Joseph Dahrieh said that the stock market climbed after a period of stagnation, led by gains in the financial and energy sectors.

Qatar's benchmark stock index .QSI fell 1.02%, with Qatar Islamic Bank QIIB.QA down 2.36%.

Outside the Gulf, Egypt's blue-chip index .EGX30 finished up 0.30%. Real-estate company Madinet Masr MASR.CA was the top gainer on the index, up 3.33%.

Egypt's central bank said last week the economy grew by 4.3% in the October-December quarter and projected it would grow by 5.0% in January-March.