Most major Gulf stock markets declined in early Monday trading amid signs that U.S.-Iran talks had ​stalled, leaving ⁠the crucial Strait of Hormuz effectively closed.

U.S. President Donald Trump ‌on Sunday dismissed Iran's response to a U.S. proposal for peace talks aimed ​at ending the war, calling Tehran's demands "totally unacceptable." 

According to Iranian media, Tehran's proposal ​called for a comprehensive ​end to the war, the lifting of sanctions, reparations, and recognition of its control over the strait.

Iran has effectively ⁠closed the strait since the war began in late February, disrupting a vital corridor that typically carries about a fifth of the world's oil and gas.

Dubai's main share index dropped 0.5%, hit by ​a 0.8% fall ‌in blue-chip ⁠developer Emaar Properties ⁠and a 1% slide in toll operator Salik.

Among other losers, budget airline Air ​Arabia declined 1.7%.

In Abu Dhabi, the index retreated ‌0.8%, with Aldar Properties losing 1.4%.

The United ⁠Arab Emirates' air defences dealt with two drones coming from Iran on Sunday, the Defence Ministry said, the latest in renewed attacks on the oil-rich Gulf country.

Saudi Arabia's benchmark index added 0.2%, helped by a 0.5% rise in oil major Saudi Aramco, a day after reporting a 25% rise in first-quarter profit, as its East-West pipeline ran at full capacity to offset disruptions from U.S.-Iran tensions ‌in the Strait of Hormuz.

The Qatari index eased ⁠0.1%.

A cargo vessel travelling from Abu Dhabi ​was struck by a drone on Sunday in Qatari waters northeast of Mesaieed port, causing a small fire that was quickly contained, Qatar's ​Defence Ministry said. ‌No injuries were reported, and the vessel continued on ⁠its way to the port.

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