May 18 (Reuters) - Gulf stocks fell in early trade on Monday after a nuclear power plant in the United Arab Emirates came under attack, and Saudi Arabia said it had intercepted three drones.

The UAE's defence ministry said it was investigating the source of the strike and had intercepted two drones, while a third hit near the Barakah facility. It said the drones were launched from the "western border" but did not elaborate.

Saudi Arabia said the three drones it intercepted had entered from Iraqi airspace and warned it would take necessary measures to respond to any attempt to violate its sovereignty and security.

Oil prices surged to two-week highs amid a broader Asian market selloff after efforts to end the U.S.-Israeli war on Iran appeared to have stalled. U.S. President Donald Trump warned Iran to act "fast" and was expected to discuss military options.

In Dubai, the main share index .DFMGI fell 1.2%, with blue-chip developer Emaar Properties EMAR.DU sliding 2.2%, Emirates NBD ENBD.DU dropping 1.3% and budget carrier Air Arabia AIRA.DU declining 3.1%.

In Abu Dhabi, the index .FTFADGI lost 1.1%, with Abu Dhabi Islamic Bank ADIB.AD shedding 1.7%.

Saudi Arabia's benchmark .TASI eased 0.1%, on course for a fifth straight session of losses.

The Qatari benchmark .QSI slipped 0.9%, with Qatar National Bank QNBK.QA - the region's largest lender- down 0.9% and Qatar Islamic Bank QISB.QA losing 1.1%.