July 16 (Reuters) - Most Gulf stock markets fell on Thursday after a new round of U.S. attacks on Iranian military sites raised fears that the confrontation could escalate into a full-blown war.

The United States launched strikes on Iranian coastal missile defenses and sites on Wednesday after reimposing a naval blockade on the Islamic Republic's ports, while Iran threatened to disrupt further energy exports from the region, saying it was waging a "war of survival" with the United States.

The fighting has escalated since Saturday, when Tehran announced the closure of the Strait of Hormuz. The ongoing military operations have further hampered shipping through this vital waterway, which before the war carried approximately 20 percent of the world's oil and gas exports.

In Dubai, the main stock index fell 0.3 percent, weighed down by a 0.5 percent decline in shares of Emirates NBD, the emirate's largest bank.

The index in Abu Dhabi fell 0.1 percent.

Sales of ship fuel at the UAE's Fujairah port fell to less than half of last year's levels in the first half of 2026, after the war affected supplies at this major Middle East ship refueling hub near the Strait of Hormuz.

The Saudi index rose 0.1 percent, supported by a 0.6 percent increase in Al Rajhi Bank.

The U.S. State Department said Wednesday it had approved a potential sale of lethal precision-guided weapons systems and related equipment to Saudi Arabia worth an estimated $1.96 billion.

The Qatar Stock Exchange remained closed following the death of former Emir Sheikh Hamad bin Khalifa Al Thani.