Major stock markets in the Gulf have retreated as hostilities escalate across the region and Iran asserts that it has sealed the strategically vital Strait of Hormuz, sending oil prices higher and reigniting global inflation fears.

Saudi Arabia’s benchmark index has eased 0.2 per cent, with oil major Saudi Aramco falling 0.5pc. Meanwhile, Brent crude futures climbed $3.10, or 4.08pc, to $79.11 by 0325 GMT.

Dubai’s main share index declined 1.4pc, dragged by a 2.6pc slide in the top lender, Emirates NBD.DU> and a 1.4pc decrease in blue-chip developer Emaar Properties.

In Abu Dhabi, the index fell 0.5pc, with Abu Dhabi Islamic Bank losing 2.1pc.