Gulf equities tumble as drone strike hits UAE nuclear plant

Gulf stocks fell in early trade on Monday after a nuclear power plant in the United Arab Emirates came under attack, and Saudi Arabia said it had intercepted three drones, reports Reuters.

The UAE's defence ministry said it was investigating the source of the strike and had intercepted two drones, while a third hit near the Barakah facility. It said the drones were launched from the "western border" but did not elaborate.

Saudi Arabia said the three drones it intercepted had entered from Iraqi airspace and warned it would take necessary measures to respond to any attempt to violate its sovereignty and security.

Oil prices surged to two-week highs amid a broader Asian market selloff after efforts to end the US-Israeli war on Iran appeared to have stalled. US President Donald Trump warned Iran to act "fast" and was expected to discuss military options.

In Dubai, the main share index fell 1.2 per cent, with blue-chip developer Emaar Properties sliding 2.2 per cent, Emirates NBD dropping 1.3 per cent and budget carrier Air Arabia declining 3.1 per cent.In Abu Dhabi, the index lost 1.1 per cent, with Abu Dhabi Islamic Bank shedding 1.7 per cent. Saudi Arabia's benchmark eased 0.1 per cent, on course for a fifth straight session of losses.

The Qatari benchmark slipped 0.9 per cent, with Qatar National Bank - the region's largest lender- down 0.9 per cent and Qatar Islamic Bank losing 1.1 per cent.