MIDEAST STOCKS-Middle East markets rebound as diplomacy fuels hopes of easing Iran hostilities

Oct 26 (Reuters) - Most Middle East stock markets rebounded in early trade on Monday, as scheduled talks between Iranian leaders and officials from Saudi Arabia, Turkey and Pakistan raised hopes of easing tensions between the US and Iran.

The talks, set to take place in Tehran on Monday, will be the first high-level contact between the four countries since Saudi Arabia became a pressure point in the wider Iran conflict.

Qatari mediators also travelled to Tehran on Sunday. Earlier mediation efforts involving both Pakistan and Qatar helped produce an interim peace agreement in June, but the deal quickly unravelled.

The Saudi benchmark index .TASI jumped 2.5%, heading for its first gain in six sessions and leading equities in the region.

Index heavyweight Saudi Aramco 2222.SE gained 1.3%, while the world's largest Islamic lender, Al Rajhi Bank 1120.SE, rose nearly 3%.

On the energy front, Saudi Arabia plans to store crude oil at Singapore's Jurong Rock Caverns from the second half of 2027 to bolster regional supply security, the two countries' energy ministers said on Monday, as the war disrupted Asia-bound shipments through the Strait of Hormuz.

In Qatar, the benchmark index .QSI climbed 1.8%, extending the previous session's marginal gains, with every constituent in positive territory. Industries Qatar IQCD.QA surged 2.4%, while the Gulf's biggest lender, Qatar National Bank QNBK.QA, advanced 1.3%.

Dubai's benchmark index .DFMGI was flat after falling 1.4% in the previous session. The Abu Dhabi index .FTFADGI added 0.4% after a 1.2% drop in the last session.

Aldar Properties ALDAR.AD rose 0.7% ahead of its third-quarter earnings, due later on Monday. Abu Dhabi Commercial Bank ADCB.AD gained 2.1%.

Outside the Gulf, Egypt's blue-chip index .EGX30 traded 0.6% higher after tumbling 3.6% in the previous session.

Healthcare and consumer staples stocks led gains, with Edita Food Industries EFID.CA rising 4.7%.