Most other Middle East bourses also advanced, mirroring international gains, while oil rallied, boosting sentiment in the world's top crude-exporting region.

Saudi Arabia’s Tadawul All-Share Index (TASI) made a slight comeback on Tuesday after three continuous negative trading sessions. The market closed at 6557.09 points with a 0.97 percent gain.

Al-Rajhi climbed 2.2 percent and Samba rose 0.9 percent as Credit Suisse gave both banks outperform ratings, helping the index to trim its losses to 5.1 percent since late-April's 18-month high.

Sector activity was positively biased with gains ranging from 0.035 in Energy & Utilities and Media & Publishing to 1.73 percent in the Hotel & Tourism sector. The overall market breadth was positive with 105 advancers against 17 decliners giving it an AD ratio of 6.17, the Financial Transaction House (FTH) said in its daily market commentary.

"We are still very much correlated to international markets and so the Saudi market has enjoyed a short-term bounce, but there's no fundamental news," said Saleh Al-Onazi, vice president of principal investment at Swicorp in Riyadh.

Global stocks edged higher on cautious optimism that progress is being made on the week-old euro zone rescue plan, while the euro found support from short-covering and bond spreads tightened.

Oil was up 2.5 percent at $71.86 a barrel at 1313 GMT, bouncing back from Monday's five-month low.

"Commodities in the past couple of months have really come under pressure, with the rising dollar-rising oil theme reversing since the start of May," said Ali Khan, managing director and head of brokerage at Arqaam Capital. "The whole commodity play is out of favor given the volatility on currency markets and the recent shocks have meant the patterns of Q1 are not holding in Q2."

Al Khaliji Bank rose 2.8 percent after the lender announced a June 1 board meeting to discuss a possible merger with International Bank of Qatar.

Qatar National Bank rose 0.9 percent and Commercial Bank of Qatar added 1.1 percent after rebounding from technical support levels, helping Doha's index climb 0.8 percent to 7,254 points.

"Trading is weak, but in the medium term the market has support at 7,200 points and if liquidity comes into bank stocks it can reach 7,600 in the medium term," said Hani Girgis, assistant chief dealer at Dlala brokerage.

Gulf Finance House lost 6.9 percent, a day after analysts voiced worries about the firm's lack of asset sales that were promised to creditors in return for rolling over loans, weighing on Kuwait's index, which fell for a second day in three. Gulf Bank and Ahli United Bank climbed 3.5 and 1.9 percent respectively, bucking the downward trend.

"The current global instability fueled by the uncertainty in Europe and the negative downward spiral of the euro has spilled over to Kuwait and hit investor sentiment," said Jasem Al-Zeraei, head of institutional sales at NBK Capital. "Investors continue to buy banks as they are defensive stocks and safe havens for cash and they continue to report positive numbers."

Commercial International Bank's (CIB), seen as a defensive stock in times of volatility, rose 2.8 percent, helping Egypt's index stem losses. On Wednesday, CIB reported stronger-than-expected first quarter profit.

— With input from agencies