By Ateeq Shariff

(Reuters) – Most stock markets in the Gulf ended higher on Sunday as fears of an all-out conflagration in the region eased after Iran played down Israel's strikes on military targets, saying the air attack had caused only limited damage.

The United States, which had pressed Israel to avoid targeting sensitive Iranian energy and nuclear sites, joined other countries in calling for a halt to the cycle of confrontation between Israel and Iran.

Saudi Arabia's benchmark index advanced 1.5%, ending three sessions of losses, led by a 3.6% jump in aluminium products manufacturer Al Taiseer Group.

Among other gainers, telecom firm Etihad Etisalat gained 2.2%, after reporting a net profit of 829 million riyals ($220.9 million), up from 524 million riyals a year ago.

In Qatar, the share index finished 1.5% higher, as all its constituents rose including petrochemical maker Industries Qatar, which was up 1.7%.

Outside the Gulf, Egypt's blue-chip index added 0.9%, with Commercial International Bank rising 2.5%.

While shares rose, crude prices are expected to fall when trading resumes on Monday because Israel's retaliatory weekend strike did not target Iranian oil and nuclear infrastructure or disrupt energy supplies, market analysts said.

In Doha on Sunday, the directors of the U.S. Central Intelligence Agency (CIA) and Israel's Mossad were due to meet Qatar's prime minister to begin negotiations for a new short-term Gaza ceasefire deal, an official briefed on the talks told Reuters.

• SAUDI ARABIA rose 1.5% to 12,069
• QATAR leapt 1.5% to 10,560
• EGYPT up 0.9% to 30,812
• BAHRAIN eased 0.1% to 2,001
• OMAN lost 0.3% to 4,811
• KUWAIT gained 1.8% to 7,594

($1 = 3.7536 riyals)