Major stock markets in the Gulf slipped in early trade on Tuesday as investors were cautious ahead of US-Iran nuclear talks, while Iran conducted naval drills near the Strait of Hormuz, reports Reuters.
Saudi Arabia's benchmark index dropped 0.9 per cent, with Al Rajhi Bank losing 1.1 per cent and Saudi Arabian Mining Company retreating 3.3 per cent.
Oil giant Saudi Aramco was down 0.4 per cent.
Crude prices - a catalyst for the Gulf's financial markets - edged lower ahead of US-Iran talks aimed at de-escalating tensions against a backdrop of expected OPEC+ supply increases.
Iran began a military drill on Monday in the Strait of Hormuz, a critical international shipping lane and key oil export route for Gulf Arab states, which have been urging a diplomatic solution to end the long-running dispute.
On Monday, US President Donald Trump said he would take an "indirect" role in the Geneva talks, adding that he thinks Tehran wants to reach an agreement. Over the weekend, he said regime change in Iran "would be the best thing that could happen."
Meanwhile, the US military is making preparations for the possibility of weeks-long operations against Iran if President Donald Trump orders an attack, Reuters reported on Saturday, citing two US officials.
Dubai's main share index was down 0.4 per cent, hit by a 2 per cent slide in sharia-compliant lender Dubai Islamic Bank.
In Abu Dhabi, the index was down 0.3 per cent.
The Qatari index declined 1 per cent, dragged down by a 2.6 per cent fall in the Gulf's biggest lender by assets Qatar National Bank.
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