The Saudi bourse led Gulf equities lower ‍in early ‍trade on Thursday, as oil prices fell ​more than $1 a barrel after the U.S. and ⁠Iran agreed to hold talks in Oman.

Crude prices, a key ⁠driver for Gulf ‌financial markets, tumbled 1.6% to $68.35 per barrel at 0900 GMT.

Despite the upcoming talks, there ⁠are concerns that U.S. President Donald Trump will still carry out his threats to strike Iran, the fourth-largest producer among the Organization of the Petroleum ⁠Exporting Countries, potentially ​risking a wider confrontation in the oil-rich region.

Saudi Arabia's benchmark stock index ‍fell 1.1%, with almost all constituents in negative territory. Losses ​were led by materials, IT and real estate.

Saudi Arabian Mining dropped 4.9% and Saudi National Bank, the kingdom's largest lender by assets, slipped 2.6%.

The Qatari benchmark index declined 0.1%, with most stocks lower. Qatar National Bank, the region's largest lender, shed 0.5% and Gulf International Services lost 1%.

Dubai's benchmark stock index eased 0.1%, dragged lower by ⁠a 2.6% drop in Commercial ‌Bank of Dubai and a 1% decline in ALEC Holding.

The Abu Dhabi benchmark index edged down ‌0.1%. Both Aldar ⁠Properties and Abu Dhabi Islamic Bank lost 1%.

(Reporting by Md ⁠Manzer Hussain; Editing by Eileen Soreng)