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Most Gulf stocks retreat amid deadlocked US-Iran talks

The major Gulf stock exchanges declined on Monday morning amid signs that U.S. Iran talks have stalled. This has effectively closed the Strait of Hormuz.

U.S. president Donald 'Trump' dismissed Iran's response on Sunday to the U.S. proposal for peace talks that aim to end the war. He called Tehran's requests "totally inacceptable."

Iranian media reported that Tehran's proposal included a comprehensive ending to the war, a lifting of sanctions, compensation, and recognition of the control it has over the Strait.

Since the beginning of the war in late February, Iran has effectively blocked the Strait. This has disrupted a vital route that carries a fifth?of all the oil and gas produced worldwide.

Dubai's main stock index fell 0.5%. This was due to a 0.8% drop in blue-chip developer Emaar Properties, and a 1.0% decline in toll operator Salik.

Air Arabia, a budget airline, was among the 'losers'. Its share price fell by 1.7%.

Aldar Properties lost 1.4% in Abu Dhabi.

Defense Ministry: The United Arab Emirates air defences fought off two drones from Iran that were launched on Sunday. This was the latest of a series of attacks?on oil-rich Gulf countries.

Saudi Arabia's benchmark stock index rose 0.2%. This was helped by the 0.5% increase in oil major Saudi Aramco a day after it reported a 25% rise of its?first quarter profit.?As its East-West pipe ran at full capacity, to offset disruptions caused by tensions between Iran and the United States in the Strait of Hormuz.

The Qatari Index fell by 0.1%.

The Qatari Defence Ministry reported that a cargo vessel traveling from Abu Dhabi, was struck by a drone Sunday morning in Qatari waters, north-east of Mesaieed Port. This caused a small fire, which was quickly contained. The vessel continued to travel towards the port without any injuries.

(source: Reuters)