From Muhammad Munther Hussein

BENGALURU, May 20 (Reuters) - Most Gulf stock markets fell in early trading on Wednesday, tracking Asian markets as rising global bond yields and higher oil prices fueled inflation concerns, while investors remained cautious as the United States and Iran failed to reach an agreement.

A sell-off continued in global bond markets amid growing expectations that the Federal Reserve (the US central bank) will raise interest rates this year.

US President Donald Trump said he might have to bomb Iran again, a day after announcing he was postponing an attack to allow more time for negotiations. Meanwhile, US Vice President J.D. Vance indicated that the United States and Iran had made progress in talks, adding that neither side wanted to resume military action.

Dubai's main index fell 0.3 percent as most sectors declined. Shares in Emaar Properties dropped 0.8 percent and shares in Emirates NBD, the emirate's largest bank, fell 1.2 percent.

The index in Abu Dhabi fell 0.7 percent, affected by a decline in shares of the telecommunications, healthcare and financial sectors.

Shares in First Abu Dhabi Bank, the UAE's largest bank, fell 2.2 percent, while shares in Abu Dhabi Shipbuilding declined 1.2 percent.

Italian defense and aerospace group Leonardo signed a €320 million ($371.1 million) contract with Abu Dhabi Shipbuilding, the naval arm of EDGE Defense Group, to supply Kuwait with naval combat systems.

The Saudi index fell 0.3 percent, with losses across most sectors. Shares of Banque Saudi Fransi dropped 3.8 percent, and shares of Arab Internet and Communications Services Company plummeted 4 percent.

However, shares of Dar Al Balad Business Solutions jumped 20.9 percent to 11.79 riyals on their first day of trading. The IT solutions company's initial public offering price was set at the top of its price range of 9.75 riyals per share, raising approximately 205 million riyals.

The Oman Stock Exchange index fell 3.3 percent, marking its ninth consecutive session of decline, with most of the listed stocks falling.

The Qatari index fell 0.2 percent, dragged down by a 1 percent drop in Vodafone Qatar shares and a 0.8 percent decline in Commercial Bank shares.