Gulf stock markets rose on Monday after US President Donald Trump said new strikes on Iran were unlikely while talks to end their eight-month-old conflict continue. The gains reversed part of Sunday's slide on fears of a fresh escalation.

Saudi Arabia's benchmark index rose 0.1%, with Al Rajhi Bank gaining 0.6%, while Perfect Presentation for Commercial Services surged 7.7% after reporting a rise in quarterly profit. Dubai's main share index gained 0.8%, led by a 3.2% advance in blue-chip developer Emaar Properties. In Abu Dhabi, the index was up 0.8%, and the Qatari index added 0.4%, led by a 1.8% rise in petrochemical maker Industries Qatar.

Trump told CNN on Sunday that renewed US military action was "highly unlikely" if Tehran made progress towards a strong agreement on its nuclear programme and reopening the Strait of Hormuz. His remarks came despite reports of shipping attacks in or near the strait, which carried nearly a fifth of the world's crude before the war.

Caution remains despite the rebound

Trump had earlier hinted at renewed attacks after last week's midterm elections, but no large-scale US military operation has followed, and Tehran has warned it would hit US and Israeli targets in response to any such move.

Anwar Gargash, a senior Emirati official, warned on Monday that the region may face a long period of instability, as a comprehensive political deal between Washington and Tehran looked hard to achieve. "We should prepare for a long period of uncertainty in which neither a decisive resolution nor stable regional order can be taken for granted," he said.

Trump is expected to meet Qatari Prime Minister Sheikh Mohammed bin Abdulrahman al Thani in Washington on Monday, with Qatar mediating between the two sides. Qatar has denied reports that the talks failed.