Most Gulf stock markets declined amid stalled negotiations between the US and Iran.
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May 11 (Reuters) - Most major stock markets in the Gulf states declined in early trading on Monday amid signs that talks between the United States and Iran had stalled, leaving the Strait of Hormuz effectively closed.
US President Donald Trump on Sunday rejected Iran's response to a US proposal for peace talks aimed at ending the war, describing Tehran's demands as "totally unacceptable".
Iranian media reported that Tehran's proposal called for a complete end to the war, the lifting of sanctions, the payment of compensation, and recognition of its control over the strait.
Iran has kept the strait effectively closed since the outbreak of war in late February, disrupting the vital Strait of Hormuz through which about one-fifth of the world’s oil and gas usually passes.
Dubai’s main index fell 0.5 percent, weighed down by a 0.8 percent drop in Emaar Properties shares and a 1 percent decline in shares of Salik, the operator of the toll system.
Among other losing stocks, shares of budget carrier Air Arabia fell 1.7 percent.
In Abu Dhabi, the index fell 0.8 percent, with Aldar Properties losing 1.4 percent.
The UAE Ministry of Defense said its air defenses dealt with two drones coming from Iran on Sunday, in the latest attacks on the oil-rich country.
Saudi Arabia’s benchmark index rose 0.2 percent, boosted by a 0.5 percent gain in shares of oil giant Saudi Aramco, a day after it reported a 25 percent jump in first-quarter profit as its east-west pipeline operated at full capacity to offset disruptions caused by tensions between the United States and Iran in the Strait of Hormuz.
The Qatari index fell 0.1 percent.
The Qatari Ministry of Defense separately announced that a commercial cargo ship coming from Abu Dhabi was targeted yesterday, Sunday, by a drone in the country’s territorial waters northeast of Mesaieed port.
The ministry added in a statement that the incident caused "a small fire on the ship without any injuries, and the ship continued its journey towards Mesaieed port after the fire was brought under control."