May 18 (Reuters) - Gulf stock markets fell in early trading on Monday after a nuclear power plant in the United Arab Emirates was attacked and Saudi Arabia announced it had intercepted three drones.

The UAE Ministry of Defense said it is investigating the source of the attack and that it intercepted two drones, while a third crashed near the Barakah nuclear power plant. The ministry added that the drones were launched from the "western border," without providing further details.

Saudi Arabia said the three aircraft it intercepted entered from Iraqi airspace, warning that it would take the necessary measures to counter any attempt to infringe on its sovereignty or security.

Oil prices rose to a two-week high amid a broad sell-off in Asian stock markets, as efforts to end the US-Israeli standoff with Iran appeared to have stalled. US President Donald Trump warned Iran that it must act "quickly," amid expectations that military options would be discussed.

The index in Dubai fell 1.2 percent, with leading real estate developer Emaar Properties down 2.2 percent, Emirates NBD Bank down 1.3 percent and Air Arabia down 3.1 percent.

The index in Abu Dhabi lost 1.1 percent, with Abu Dhabi Islamic Bank declining 1.7 percent.

The index in Saudi Arabia fell 0.1 percent, heading towards recording losses for the fifth consecutive session.

The index in Qatar fell 0.9 percent, with shares of Qatar National Bank, the region's largest bank, dropping 0.9 percent. Shares of Qatar Islamic Bank lost 1.1 percent.