Major Gulf stock markets retreated in early trade on Thursday as investors assessed ​efforts by the U.S. ⁠and Iran to de-escalate tensions through talks over Tehran's ‌nuclear programme, even as both sides stepped up military activity in the ​region.

The White House said on Wednesday that this week's Geneva talks with ​Iran yielded ​modest progress, though gaps persisted on certain issues. Officials noted that Tehran is anticipated to return with additional ⁠details within the next two weeks.

According to the U.S. Federal Aviation Administration website, Iran has issued a notice to airmen announcing planned rocket launches across southern regions on Thursday between ​0330 GMT and ‌1330 GMT.

Satellite ⁠images show that ⁠Iran has recently built a concrete shield over a new facility at ​a sensitive military site and covered it ‌in soil, experts say, advancing work ⁠at a location reportedly bombed by Israel in 2024 amid tensions with the U.S.

The U.S. has positioned warships in proximity to Iran, with Vice President JD Vance stating that Washington is considering whether to maintain diplomatic talks with Tehran or explore "another option."

Saudi Arabia's benchmark stock index dropped 0.9%, dragged down by a 0.9% fall in Al Rajhi Bank ‌and a 1.5% decline in the country's biggest lender, ⁠Saudi National Bank.

Dubai's main share index fell ​0.9%, with blue-chip developer Emaar Properties losing 1.8% and top lender Emirates NBD retreating 1.5%.

In Abu Dhabi, the index slid 0.9%.

The ​Qatari index ‌tumbled 1.6%, with all constituents in negative territory. ⁠Qatar National Bank was down 2.2%.

(Reporting ​by Ateeq Shariff in Bengaluru; Editing by Subhranshu Sahu)