Major stock markets in the Gulf were subdued in early trade, as caution prevailed ahead of a deadline set by US President Donald Trump for Iran to reopen the Strait of Hormuz to all shipping, reports Reuters.

The uncertainty has kept investors in a risk-off mood, with the US dollar holding gains and oil prices rising sharply.

Saudi Arabia’s benchmark index dropped 0.5 per cent, with a 0.2pc fall in Al Rajhi Bank and a 1.6pc decline in Saudi Basic Industries Corp.

The kingdom said it intercepted and destroyed seven ballistic missiles launched towards its Eastern Region, with debris falling near energy facilities, according to the defence ministry.

Dubai’s main share index lost 0.3pc, with blue-chip developer Emaar Properties declining 2.3pc. In Abu Dhabi, the index eased 0.3pc.

The Qatari index edged 0.1pc higher, helped by a 0.8pc rise in Qatar Islamic Bank.