Gulf stocks increase on hopes of easing of U.S.-Iran tensions

Gulf stocks rose in early trade on Thursday, led by markets in Dubai and Kuwait, on optimism that tensions between the United States and Iran may be easing.

The Dubai index .DFMGI and Kuwait index .BKP were both trading 1.3% higher, while the Abu Dhabi index .ADI rose 0.8% in early trade. The Saudi market will open at 0700 GMT.

U.S. President Donald Trump on Wednesday backed away from days of angry rhetoric against Iran as the two countries tried to defuse a crisis over the American killing of Iranian military commander Qassem Soleimani.