LONDON: Most stock markets in the Gulf were trading higher on Sunday, relatively unscathed by escalating tension in the region following US strikes on Iranian nuclear sites, as investors assessed the potential economic impact of the conflict.

US forces struck Iran’s three main nuclear sites late on Saturday, and President Donald Trump warned Tehran it would face more devastating attacks if it does not agree to peace.

By around 0915 GMT, Saudi Arabia’s benchmark index TASI had edged 0.4 percent higher, helped by a 0.7 percent rise in the country’s biggest lender, Saudi National Bank. Qatar’s benchmark index QSI had gained 0.2 percent, reversing slight early losses.

“It is admittedly a bit surprising to see regional equities shrugging off the US strikes on Iran with relative ease, with opening losses having pared relatively rapidly,” said Michael Brown, Senior Research Strategist at Pepperstone.

Brown said that the markets had already discounted the probability of a US attack, and investors anticipated a swifter resolution to the conflict following the attacks.

The market is focused on whether the conflict spreads to other nations in the region, with there being no sign of that happening right now, he added.

Bahrain and Kuwait, home to US bases, made preparations on Sunday for the possibility of the conflict spreading to their territory, with Bahrain urging drivers to avoid main roads and Kuwait establishing shelters in a ministries complex.

Kuwait’s premier index reversed early losses to trade 0.3 percent higher by around the same time, while Bahrain’s main index was flat. The Omani share index MSX30 was up 0.5 percent.

Elsewhere in the Middle East, Egypt’s benchmark index EGX30 was trading 1.7 percent higher, while the main index in Tel Aviv was up around 1 percent to reach its all-time high.