Major stock markets in the Gulf fell in early trade on Thursday amid uncertainty following the U.S. decision to relocate personnel from the Middle East ahead of nuclear talks with Iran.

U.S. President Donald Trump said on Wednesday U.S. personnel were being moved out of the Middle East because "it could be a dangerous place," adding that the United States would not allow Iran to have a nuclear weapon.

Reuters reported on Wednesday that the U.S. is preparing a partial evacuation of its Iraqi embassy and will allow military dependents to leave locations around the Middle East due to heightened security risks in the region, according to U.S. and Iraqi sources.

Saudi Arabia's benchmark index dropped 1.3% as almost all its constituents were in negative territory including Al Rajhi Bank, which was down 0.6%.

Among other losers, oil giant Saudi Aramco was down 0.4%.

The decision by the U.S. to evacuate some personnel comes at a volatile moment in the region. Trump's efforts to reach a nuclear deal with Iran appear to be deadlocked and U.S. intelligence indicates that Israel has been making preparations for a strike against Iran's nuclear facilities.

Iranian Defence Minister Aziz Nasirzadeh said on Wednesday that if Iran was subjected to strikes it would retaliate by hitting U.S. bases in the region.

Dubai's main share index retreated 1.7%, its biggest intraday fall since April, dragged down by losses across sectors and led by a 3% slide in blue-chip developer Emaar Properties.

In Abu Dhabi, the index fell 1%, hit by a 2% fall in ADNOC Gas.

The Qatari index traded 0.8% lower, with petrochemical maker Industries Qatar losing 1%.

(Reporting by Ateeq Shariff in Bengaluru; Editing by Mrigank Dhaniwala)