Most major Gulf stock markets ​fell on Wednesday as ⁠hostilities flared after U.S.-Iran peace talks stalled. The U.S. military ‌reported that Iranian missile attacks targeting Bahrain, Kuwait, and other sites were ​either intercepted or failed, while diplomatic efforts between Washington and Tehran remained at ​an impasse.

Iran's Revolutionary ​Guards said they had targeted the U.S. Fifth Fleet headquarters. Despite both sides signalling a preliminary deal last ⁠week, no agreement has been formally endorsed.

Saudi Arabia's benchmark index fell 0.1%, hit by a 2.9% slide in Banque Saudi Fransi and a 0.4% drop in oil major Saudi Aramco.

A survey showed ​the kingdom's ‌non-oil private ⁠sector grew ⁠at its fastest pace in three months in May, supported by stronger domestic ​demand and stabilising supply chains, though business optimism ‌remained subdued amid the conflict in ⁠the region.

Gulf stock markets weakened as investors turned cautious, though hopes for a diplomatic breakthrough could limit further losses, said Joseph Dahrieh, managing director at Tickmill.

He added that solid domestic economic conditions may help support confidence. Dubai's main share index dropped 0.8%, with blue-chip developer Emaar Properties and sharia-compliant lender Dubai Islamic Bank both retreating 2.4%. In Abu Dhabi, the index was ‌down 0.4%. The Qatari index eased 0.1%, with petrochemicals maker ⁠Industries Qatar dropping 1.4%.

Outside the Gulf, ​Egypt's blue-chip index fell 0.7%.

  • Saudi Arabia eased 0.1% to 11,002
  • Abu Dhabi fell 0.4% to 9,582
  • Dubai dropped 0.8% to 5,686
  • Qatar down 0.1% to 10,393
  • Egypt lost 0.7% to ​52,564
  • Bahrain decreased 0.2% ‌to 1,983
  • Oman declined 1.3% to 7,662
  • Kuwait fell 0.4% to ⁠9,197

(Reporting by Ateeq Shariff ​in Bengaluru. Editing by Sharon Singleton and Mark Potter)