MIDEAST STOCKS-Most Gulf markets slip on US-Iran caution; Egypt jumps on rate cut

By Ateeq Shariff

Feb 15 (Reuters) - Most Gulf stock markets ended lower on Sunday as investors grew cautious amid the possibility of rising regional tensions. The uncertainty dampened sentiment, leading some traders to pare back risk and reduce exposure to equities.

The U.S. military is making preparations for the possibility of weeks-long operations against Iran if President Donald Trump orders an attack, Reuters reported on Saturday, citing two U.S. officials. Such an escalation could trigger a much more serious conflict than anything previously seen between the two countries.

Iran is seeking a nuclear deal with the United States that would bring economic gains to both countries, an Iranian diplomat was reported to have said on Sunday, just days ahead of a second round of talks between Tehran and Washington.

Saudi Arabia's benchmark index .TASI lost 0.2%, hit by a 0.5% fall in Al Rajhi Bank 1120.SE and a 0.9% decline in oil giant Saudi Aramco 2222.SE.

Gulf markets continue to look resilient, with the capacity for sustained growth. However, concerns regarding a regional conflict involving Iran, the United States, and Israel currently dominate the landscape, said Samer Hasn, Senior Market Analyst at XS.com.

In Qatar, the index .QSI dropped 0.4%, with Qatar Islamic Bank QISB.QA losing 1.1%.

Outside the Gulf, Egypt's blue-chip index .EGX30 advanced 3.6%, closing at an all-time high, as almost all its constituents were in positive territory after the most populous Arab country cut its interest rates by 100 basis points.