April 7 (Reuters) - Major Gulf stock markets were little changed at the start of trading on Tuesday, as caution prevailed ahead of U.S. President Donald Trump's deadline for Iran to reopen the Strait of Hormuz to shipping.

Markets have been on edge since the outbreak of the US-Israeli war on Iran in late February, and Tehran effectively closed the vital Strait of Hormuz for the passage of global oil supplies, raising fears of rising inflation.

Investors are hoping that diplomatic efforts will help end the conflict, but talks have yet to make any progress. Trump has set a deadline of 8 p.m. Eastern Time on Tuesday (midnight GMT) for reaching an agreement.

Iran said on Monday it wanted to end the war permanently with the United States and Israel, but rejected pressure to reopen the Strait of Hormuz, while Trump warned he could "obliterate" Iran if it did not comply with his deadline.

The uncertainty has kept investors risk-averse, with the US dollar holding onto its gains and oil prices rising sharply today.

The Saudi benchmark index fell 0.5 percent, with Al Rajhi Bank shares down 0.2 percent and Saudi Basic Industries Corp (SABIC) shares down 1.6 percent.

The Saudi Ministry of Defense announced today that the Kingdom intercepted and destroyed seven ballistic missiles launched towards the Eastern Province, and that their debris fell near energy facilities.

Dubai's main index fell 0.3 percent, with shares of Emaar Properties dropping 2.3 percent.

In Abu Dhabi, the index fell 0.3 percent.

The Qatari index rose 0.1 percent, supported by a 0.8 percent increase in shares of Qatar Islamic Bank.