MIDEAST STOCKS-Gulf bourses mixed as fears over US strikes offset Iran-Saudi talks

By Ateeq Shariff

Nov 3 (Reuters) - Gulf stock exchanges ended mixed on Tuesday as peace hopes over Tehran's statement that talks with Saudi Arabia were continuing were offset by fears of escalation in the eight-month conflict after the US struck Iran's Qeshm Island in the Strait of Hormuz.

A US official said on Monday that the strikes, earlier reported by the Wall Street Journal, appeared limited and did not mark a resumption of major combat operations. The official spoke on condition of anonymity.

Saudi Arabia's benchmark index .TASI eased 0.1%, weighed down by a 0.8% fall in Saudi Telecom Company 7010.SE.

However, oil giant Saudi Aramco 2222.SE added 0.2% after reporting a steep rise in third-quarter profit.

Aramco said on Tuesday that its net profit rose 34.5% despite attacks targeting the company. The increase came mainly from higher revenue and its exit from a joint venture. The US-Iran war has cut Aramco's output, but higher oil prices have offset the lower volumes.

Alongside the results, the company declared a base dividend of $21.9 billion.

With the conflict disrupting operations, Aramco is also looking at ways to protect its exports. CEO Amin Nasser said in a statement on Tuesday that the company is exploring additional export routes and overseas capacity, including a possible expansion of its East-West pipeline.

On the other hand, Al Majed for Oud Co 4165.SE advanced 5.2%, a day after reporting 50% jump in third-quarter profit.

Adding to regional security concerns, Yemen's Iran-aligned Houthis said on Monday they had launched drones towards Saudi Arabia's Dammam airport, an early-warning radar in Jizan and a military transport aircraft at Jizan airport.

In Qatar, the index .QSI reversed early losses to finish 0.2% higher, with the Gulf's biggest lender Qatar National Bank QNBK.QA rising 0.6%.

GCC equities were little changed as investors weighed regional diplomacy against renewed tensions. Heightened risks curbed appetite, but progress in mediation limited losses. Still, supply disruptions in key shipping lanes remain a threat, said Daniel Takieddine co-founder and CEO, Sky Links Capital Group.

Dubai's main share index .DFMGI inched 0.1% higher, helped by a 2.4% gain in Emaar Properties EMAR.DU.

Emaar, the blue-chip developer, is considering a plan to acquire its construction arm Emaar Development EMAARDEV.DU in a potential deal worth as much as $3 billion, Bloomberg News reported on Tuesday.

Shares of Emaar Development surged 10.7%.

The Abu Dhabi index .FTFADGI fell 0.3%.

Meanwhile, looking to safeguard its exports, the UAE's energy minister said on Monday the country will protect its energy infrastructure and invest in new export routes, overseas storage capacity and shipping fleets to be better prepared amid the US-Israeli war on Iran.

Outside the Gulf, Egypt's blue-chip index .EGX30 advanced 1.6%,