From Atiq Sharif

June 3 (Reuters) - Most major stock markets in the Gulf region fell on Wednesday as fighting intensified following the collapse of peace talks between the United States and Iran.

The US military said Iranian missile attacks targeting Bahrain, Kuwait and other locations were intercepted or failed, while diplomatic efforts between Washington and Tehran reached a dead end.

Iran's Revolutionary Guard said it targeted the headquarters of the US Fifth Fleet.

The two sides indicated last week that they had reached a preliminary agreement, but no agreement has been formally ratified.

The Saudi market's benchmark index fell 0.1 percent, impacted by a 2.9 percent decline in shares of Saudi French Bank and a 0.4 percent drop in shares of Saudi Aramco.

A survey showed that the Kingdom's non-oil private sector grew in May at its fastest pace in three months, supported by rising domestic demand and stable supply chains, although business confidence remained weak amid the ongoing war in the region.

Joseph Daherieh, managing director at Techmill, said that Gulf stock markets declined as investors grew more cautious, but hopes for a diplomatic breakthrough might limit further losses.

He added that strong domestic economic conditions might help to bolster confidence.

Dubai's main index fell 0.8 percent, with shares of Emaar Properties and Dubai Islamic Bank declining by the same percentage to 2.4 percent.

In Abu Dhabi, the index fell 0.4 percent.

The Qatari index fell 0.1 percent, with shares of Industries Qatar dropping 1.4 percent.

The indices in Oman, Kuwait and Bahrain lost 1.3 percent, 0.4 percent and 0.2 percent respectively.

Outside the Gulf region, Egypt's blue-chip index fell 0.7 percent.