From Atiq Sharif

February 16 (Reuters) - Major Gulf stock markets closed lower on Monday as investors assessed the potential impact of upcoming U.S.-Iran talks on the markets.

The two countries are scheduled to hold a second round of talks in Geneva on Tuesday, after negotiations resumed this month to resolve a decades-long dispute over Tehran's nuclear program and to avoid a new military confrontation.

An Iranian diplomat, quoted on Sunday, said that Tehran is seeking a nuclear agreement with the United States that could bring economic gains to both sides, including potential investments in the energy and mining sectors, as well as possible deals to purchase aircraft.

Reuters quoted US officials on Saturday as saying that the US military would send a second aircraft carrier to the region in preparation for a possible weeks-long operation against Iran if President Donald Trump orders an attack. Any escalation would likely trigger a crisis more serious than any previous escalation in the conflict between the two countries.

The Saudi index lost 0.4 percent, affected by a 1.3 percent drop in shares of the National Bank of Saudi Arabia, the country's largest bank by assets, and a 0.7 percent decline in shares of Aramco.

Stock markets in the region are under pressure due to geopolitical developments that have kept investors cautious ahead of anticipated US-Iranian talks.

Antoine Naddaf of Jeff Trade said that risk aversion is prevalent across the region and has particularly affected Saudi stocks.

He added, "Despite the Saudi market maintaining positive fundamental factors and issuing strong financial results that may support a recovery in the coming period, external geopolitical factors and oil price volatility continue to put pressure on market sentiment."

Oil prices, a key driver of financial markets in the Gulf region, saw little change on Monday, a day before US-Iranian talks were set to begin, and amid signs that the OPEC+ alliance is leaning towards resuming production increases.

The index in Dubai fell 0.4 percent, with leading real estate developer Emaar Properties dropping 1.2 percent.

In Abu Dhabi, the index fell 0.1 percent.

The index in Qatar lost 0.4 percent, affected by a 2.2 percent drop in shares of Qatar Petrochemical Industries.

But the index in Oman rose 2.2 percent, the index in Bahrain increased slightly by 0.1 percent, and the index in Kuwait climbed 0.3 percent.

Outside the Gulf region, Egypt's blue-chip index fell 1.6 percent, retreating from an earlier peak and giving up gains made in the previous session when it rose 3.6 percent after Egypt cut interest rates by 100 basis points.