Qatar's stock market slid in early Monday trading, while the UAE ​suspended trading ⁠for two days, as the Gulf grappled with Iran's retaliatory missile and ‌drone strikes - an early sign of mounting economic disruption across the region.

Saudi Arabia's market, meanwhile, ​clawed back some of the previous session's losses.

Israel launched a fresh wave of strikes on ​Tehran on ​Sunday, and Iran responded with new missile barrages, a day after Supreme Leader Ali Khamenei's killing pushed the Middle East - and the global economy - ⁠into deeper uncertainty.

The UAE Capital Markets Authority said the Abu Dhabi Securities Exchange and Dubai Financial Market would remain shut on March 2 and March 3, citing its supervisory and regulatory role over the country's capital markets.

In Qatar, ​the benchmark ‌index - which was ⁠closed for a ⁠bank holiday on Sunday - dropped 3.7%, with all its constituents slipping. The country's markets are ​open from Sunday to Thursday. The Gulf's biggest lender ‌by assets, Qatar National Bank, fell 3.7%.

Qatar Islamic ⁠Bank plunged 5.2% and was on course for its biggest fall since August 2023. HSBC cut its target price for the Sharia-compliant lender to 28.4 riyals ($7.79) from 29.4 riyals.

Elsewhere, maritime and logistics company Qatar Navigation tumbled 6.2%, whereas LNG shipping company Qatar Gas Transport retreated 4.1%.

Kuwait's Index - which resumed trading after suspension on Sunday citing "exceptional circumstances" - sank 3.3%, with Kuwait Finance House losing 2.6%.

Saudi Arabia's benchmark index advanced 1%, a day after falling more than ‌2%, led by a 1.5% jump in oil giant Saudi ⁠Aramco.

In the previous session, Aramco shares were up ​3.4%, its biggest intraday gain in over four months.

Oil prices surged by as much as 13% on Monday after shipping in the crucial Strait of Hormuz was ​disrupted by ‌retaliatory Iranian attacks

Muscat's index climbed 1%, while Bahrain stocks eased 0.1%.

($1 = ⁠3.6445 Qatar riyals)

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