Most major stock markets across the Gulf dropped in early trade on Wednesday as fresh hostilities erupted after U.S.-Iran peace talks stalled.

Hostilities in the Gulf escalated again on Wednesday, as the U.S. military reported that Iranian missile attacks targeting Bahrain, Kuwait, and other locations in the region were either intercepted or unsuccessful, while diplomatic efforts between Washington and Tehran remained stalled.

Iran's Revolutionary Guards said they had launched an attack on the U.S. Fifth Fleet headquarters. While Iran and the United States said last week they had reached a preliminary deal to stop the war, neither side has formally endorsed an agreement.

Dubai's main share index .DFMGI dropped 0.6%, with top lender Emirates NBD ENBD.DU losing 1.1% and blue-chip developer Emaar Properties EMAR.DU falling 0.9%.

In Abu Dhabi, the index .FTFADGI was down 0.5%.

According to the reports, Iran has not been in contact with the United States for several days, although U.S. President Donald Trump said negotiations had been ongoing without interruption.

The Qatari index .QSI eased 0.3%, with the Gulf's biggest lender Qatar National Bank QNBK.QA dropping 0.5%.

Saudi Arabia's benchmark index .TASI bucked the trend to edge 0.2% higher, helped by a 1.3% rise in ACWA Power Co 2082.SE.

(Reporting by Ateeq Shariff in Bengaluru: Editing by Sharon Singleton)