Major stock markets in the Gulf were mixed in early trade on Monday after Iran launched a retaliatory attack on Israel, stoking fears of a wider regional conflict.

Iran's attack involved more than 300 missiles and drones, and was the first on Israel from another country in more than three decades, raising concerns about a broader regional conflict affecting oil traffic through the Middle East.

The attack, which Iran called retaliation for an air strike on its Damascus consulate, caused only modest damage, with missiles shot down by Israel's Iron Dome defence system. Israel, which is at war with Iran-backed Hamas militants in Gaza, has neither confirmed nor denied it struck the consulate.

Saudi Arabia's benchmark index edged 0.2% higher, helped by a 0.8% rise in ACWA Power and a 0.9% increase in petrochemical maker Saudi Basic Industries .

In Qatar, the index gained 0.8%, as almost all its constituents were in positive territory including Qatar Gas Transport, which advanced 2.6%.

Saudi Arabian and Qatari markets - which resumed trading on Sunday after Eid al-Fitr, fell 0.3% and 0.8%, respectively.

Dubai's main share index, which traded after a five-session Eid break, dropped 0.4%, hit by a 0.5% fall in toll operator Salik and a 1.8% decrease in budget airliner Air Arabia.

Major airlines across the Middle East announced they would resume operations in the region after cancelling or rerouting some flights as Iran launched drones and missiles at Israel through Saturday night into Sunday.

In Abu Dhabi, the index, which also traded after a 5-session break, eased 0.1%.

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