Most Gulf stock markets closed lower on Thursday, with Saudi Arabia’s benchmark Tadawul All Share index easing 0.3%.
The decline followed the conclusion of a round of indirect talks between the United States and Iran that ended without any sign of progress or agreement.
The lack of diplomatic headway kept risk sentiment fragile across the region.
Investors, who had been weighing the potential for de-escalation, instead faced renewed uncertainty regarding the geopolitical outlook for the Middle East.
The sell-off marked a continuation of the downward trend seen earlier in the week, when regional markets reversed previous gains amid growing anxiety over stalled negotiations.
Dubai’s primary share index had already fallen 0.6% on Tuesday, while Saudi Arabia’s benchmark dropped 0.4% in the same session.