Major Gulf markets ease as investors await US-Iran developments

Major Gulf stock markets fell in early trade on Thursday as investors adopted a cautious stance ahead of a third round of U.S.-Iran nuclear talks set to take place in Geneva later in the day, Reuters reported.

Saudi Arabia's benchmark stock index (.TASI), opens new tab slipped 0.5%, deepening its losses as the kingdom's budget deficit widened quarter-on-quarter due to higher expenditures.

Losses were broad-based, with financial stocks leading the decline, including a 0.6% descent in Al Rajhi Bank (1120.SE), opens new tab, the world's largest Islamic lender, and a 1.4% drop in Saudi National Bank (1180.SE), opens new tab, the country's largest lender by assets.

Saudi Aramco (2222.SE), opens new tab shares fell 0.7%, on track to extend a two-day slide, following the energy giant's confirmation of damage at its Juaymah terminal and resulting delivery cancellations.

Reuters reported that Saudi Arabia is ramping up oil production and exports as part of contingency measures to mitigate potential disruptions from a U.S. strike on Iran.

In Dubai, the main stock index (.DFMGI), opens new tab retreated 0.5%, weighed down by banking stocks. Emirates NBD Bank (ENBD.DU), opens new tab fell by more than 3%, while blue-chip real estate developer Emaar Properties (EMAR.DU), opens new tab shed nearly 1%.

The UAE's Central Bank unveiled plans on Wednesday to establish a sovereign financial cloud infrastructure in collaboration with G42 subsidiary Core42.

Abu Dhabi's stock index (.FTFADGI), opens new tab edged down 0.3%, following two flat sessions, with Alpha Dhabi Holding and Aldar Properties declining 0.6% and 0.5%, respectively.

Bloomberg reported that Shell (SHEL.L), opens new tab is in talks with ADNOC and others regarding the sale of its stake in an Australian LNG project.

Qatar's stock index (.QSI), opens new tab eased 0.3%, dragged by broad-based losses. Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, dipped 0.3%, while Qatar Aluminum Manufacturing Co (QAMC.QA), opens new tab tumbled 3.1%.