By Ateeq Shariff

April 7 (Reuters) - Most stock markets in the Gulf ended lower on Monday, as equities across the world tanked on fears of a global recession caused by U.S. President Donald Trump's sweeping tariffs and the escalating trade war.

China on Friday had announced retaliatory measures, with additional levies of 34% on American goods, confirming investor fears that a global trade war was underway.

When asked about selloff across markets, Trump on Sunday said that investors must endure the consequences and that he would refrain from negotiating with China until the U.S. trade deficit is addressed.

Dubai's main share index .DFMGI declined 3.1%, recovering from the more-than-6% slump earlier in the session. The index was weighed by a 5.7% slide in sharia-compliant lender Dubai Islamic Bank DISB.DU.

In Abu Dhabi, the index .FTFADGI finished 2.6% lower, with energy firm ADNOC Gas ADNOCGAS.AD retreating 5%.

Oil prices - a catalyst for the Gulf's financial markets - extended losses, falling 3% on concerns that a potential recession fuelled by the trade war could reduce demand for crude, even as OPEC+ readies a supply increase.

Saudi Arabia's benchmark index .TASI reversed early losses to rebound 1.1%, led by a 6.8% jump in ACWA Power 2082.SE and a 4.8% increase in Saudi Arabian Mining Company 1211.SE.

In the previous session, the index fell 6.8%, its biggest one-day slide since the early days of the 2020 COVID-19 pandemic.

The Saudi market outlook could remain negative as long as the general market sentiment maintains its risk-off mood and oil prices continue to fall, said Hassan Fawaz, chairman and founder of broker GivTrade.

The kingdom's non-oil private sector activity grew rapidly in March, with new orders boosted by lower prices and improved economic conditions, although the rate of growth slowed from January's near 14-year high, a survey showed on Monday.

The Qatari index .QSI lost 0.4%, with the Gulf's biggest lender Qatar National Bank QNBK.QA losing 2.3%.

Investors also bet the mounting risk of recession could see the U.S. Federal Reserve cutting interest rates as early as May. The Fed's decisions impact monetary policy in the Gulf, where most currencies, including the riyals, are pegged to the U.S. dollar.

Outside the Gulf, Egypt's blue-chip index .EGX30 lost 0.6%.

(Reporting by Ateeq Shariff in Bengaluru; Editing by Leroy Leo)

((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))