Sept 17 (Reuters) - Most major Gulf bourses ticked slightly higher early on Thursday despite mounting geopolitical friction, as investors weighed the US Federal Reserve's first interest rate hike in more than three years.
Saudi Arabia's benchmark index (.TASI) inched 0.1% higher, helped by a 1.1% rise in SABIC Agri-Nutrients Company (2020.SE).
Dubai's main share index (.DFMGI) added 0.1%, with top lender Emirates NBD (ENBD.DU) gaining 0.9%.
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In Abu Dhabi, the index (.FTFADGI) was up 0.3%, while the Qatari benchmark (.QSI) traded flat.
Most Gulf Cooperation Council central banks raised their benchmark rates after the US Fed's quarter-point increase on Wednesday.
Regional currencies are pegged to the dollar, except for the Kuwaiti dinar, which is tied to a basket that includes the dollar, so Gulf monetary policy routinely mirrors the Fed.
Saudi Arabia raised its repo and reverse repo rates by 25 basis points to 4.50% and 4.00%, respectively. The United Arab Emirates raised its overnight deposit facility base rate by 25 bps to 3.9%, while Oman raised its repo rate by the same margin to 4.5%. Qatar's central bank also raised key rates by 25 bps.
Meanwhile, cross-border warfare flared as Saudi airstrikes struck Yemen, countered by Iran-backed Houthi drone and missile salvos targeting Saudi cities, while US President Donald Trump voiced hope for an imminent end to the seven-month conflict.
The hostilities have directly threatened critical energy infrastructure. Recent drone strikes damaged two pumping stations along Saudi Aramco's 1,200-km East-West Pipeline, a vital conduit bypassing the vulnerable Strait of Hormuz.
On Wednesday evening, US President Donald Trump said he hoped the conflict, now in its seventh month, would end soon.
Reporting by Ateeq Shariff in Bengaluru; Editing by Jonathan Mathew
