By Md Manzer Hussain

BENGALURU, May 20 (Reuters) - Most Gulf stock markets fell in early trade on Wednesday, tracking weaker Asian equities, as rising global bond yields and elevated oil prices fuelled inflation concerns, while investors remained wary of the absence of a U.S.-Iran agreement.

A sell-off in global bond markets persisted as investors raised bets that the U.S. Federal Reserve may need to increase interest rates this year. Brent crude futures were down 0.5%, but were still above $110 a barrel, as the Strait of Hormuz remains closed.

U.S. President Donald Trump said he may need to strike Iran again, a day after saying he would postpone an attack to allow more time for negotiations. Meanwhile, Vice President JD Vance said the United States and Iran had made progress in talks, adding that neither side wanted a resumption of military action.

Dubai's benchmark stock index .DFMGI fell 0.3%, with losses across most sectors. Emaar Properties EMAR.DU shed 0.8%, while Emirates NBD ENBD.DU, Dubai's largest lender, slipped 1.2%.

The Abu Dhabi benchmark index .FTFADGI dropped 0.7%, pressured by telecom, healthcare, and financial stocks.

First Abu Dhabi Bank FAB.AD, the UAE's largest lender, lost 2.2%, while Abu Dhabi Ship Building ADSB.AD slid 1.2%.

Italian aerospace and defence group Leonardo signed a 320 million euro ($371.1 million) contract with ADSB, the naval arm of defence group EDGE, to provide naval combat systems for Kuwait.

Saudi Arabia's benchmark index .TASI declined 0.3%, with most sectors trading lower. Banque Saudi Fransi 1050.SE fell 3.8% and Arabian Internet and Communications Services 7202.SE dropped 4%.

However, Dar Al-Balad Business Solutions Co 7205.SE jumped 20.9% to 11.79 riyals on debut. The IT solution provider's IPO was priced at the top of its range at 9.75 riyals per share, raising about 205 million riyals.

The Omani benchmark index .MSX30 fell for a ninth straight session, sliding 3.3%, with nearly all stocks in negative territory. OQ Base Industries OQBI.OM shed 8.2% and OQ Gas Networks OQGN.OM lost 5.8%.

Qatar's benchmark index .QSI eased 0.2%, weighed down by a 1% decline in Vodafone Qatar VFQS.QA and a 0.8% dip in Commercial Bank COMB.QA.