Major stock markets in the Gulf slipped in early trade on Tuesday as ​investors were ⁠cautious ahead of U.S.–Iran nuclear talks, while Iran conducted ‌naval drills near the Strait of Hormuz.

Saudi Arabia's benchmark index dropped ​0.9%, with Al Rajhi Bank losing 1.1% and Saudi Arabian Mining Company retreating 3.3%.

Oil giant ​Saudi Aramco was ​down 0.4%.

Crude prices - a catalyst for the Gulf's financial markets - edged lower ahead of U.S.-Iran talks aimed ⁠at de-escalating tensions against a backdrop of expected OPEC+ supply increases.

Iran began a military drill on Monday in the Strait of Hormuz, a critical international shipping lane and key ​oil export ‌route for Gulf ⁠Arab states, ⁠which have been urging a diplomatic solution to end the long-running ​dispute.

On Monday, U.S. President Donald Trump ‌said he would take an "indirect" role ⁠in the Geneva talks, adding that he thinks Tehran wants to reach an agreement. Over the weekend, he said regime change in Iran "would be the best thing that could happen."

Meanwhile, the U.S. military is making preparations for the possibility of weeks-long operations against Iran if President Donald Trump orders an attack, Reuters reported on Saturday, citing two ‌U.S. officials.

Dubai's main share index was down 0.4%, ⁠hit by a 2% slide in sharia-compliant ​lender Dubai Islamic Bank .

In Abu Dhabi, the index was down 0.3%. 

The Qatari index declined 1%, dragged down by ​a 2.6% fall ‌in the Gulf's biggest lender by assets ⁠Qatar National Bank .

(Reporting by ​Ateeq Shariff in Bengaluru, editing by Andrei Khalip)