From Ateeq Sharif

April 7 (Reuters) - Most Gulf stock markets closed lower on Monday amid a global stock market rout on fears of a global recession caused by sweeping tariffs announced by U.S. President Donald Trump.

China announced on Friday retaliatory measures by imposing additional 34 percent tariffs on US goods, confirming investor fears of a global trade war.

The Dubai index fell 3.1 percent, having fallen more than 6 percent earlier in the session. The index was impacted by a 5.7 percent drop in Dubai Islamic Bank shares.

The Abu Dhabi index also closed down 2.6 percent, with ADNOC Gas shares falling 5 percent.

Oil prices, a catalyst for Gulf financial markets, extended losses, falling 3 percent on concerns that a potential recession caused by a trade war could reduce demand for crude, even as the OPEC+ alliance prepares to increase supply.

The Saudi index rose 1.1 percent, reversing early losses, after shares of ACWA Power and Saudi Arabian Mining jumped 6.8 percent and 4.8 percent, respectively.

The index fell 6.8 percent in the previous session, marking its largest daily decline since the start of the COVID-19 pandemic in 2020.

Hassan Fawaz, Chairman and Founder of Jeff Trade Financial Brokerage, said that the outlook for the Saudi market may remain negative as long as the overall market maintains its risk-averse trend and oil prices continue to decline.

The Qatari index fell 0.4 percent, with shares of Qatar National Bank, the largest Gulf bank, falling 2.3 percent.

Stock market indices in Bahrain, Oman, and Kuwait also declined by 1.2 percent, 0.7 percent, and 0.6 percent, respectively.

Outside the Gulf region, Egypt's blue-chip index fell 0.6 percent.

(Prepared by Mohamed Ali Farag for the Arabic edition - Edited by Mahmoud Salama)