Mideast Stocks: Major Gulf Markets Ease on Softer Oil Prices

Major stock markets in the Gulf slipped in early trade on Monday, weighed down by weaker oil prices, while investors awaited further clarity on the U.S. interest rate outlook.

Oil prices, a catalyst for the Gulf's financial markets, dropped on Monday, extending losses from last week, as Russia-Ukraine peace talks edged closer to a solution and the greenback strengthened.

Hopes for a Russia-Ukraine deal raised the prospect of easing sanctions, potentially freeing up more Russian supply.

The Dubai Financial Market has delayed the start of trading session on Monday due to connectivity issues affecting participants.

Saudi Arabia's benchmark index dropped 0.7%, with Al Rajhi Bank losing 1.4% and oil behemoth Saudi Aramco slipping 0.6%.

In Abu Dbabi, the index declined 0.4%.

The probability of a Fed rate cut next month inched lower to 69% on Monday, after jumping to 74% in the previous session, according to the CME FedWatch Tool.

Investors await release of U.S. retail sales and producer prices data, due later in the week.

Bets of rate cuts had surged to 74% from 40% on Friday following dovish comments from New York Fed President John Williams.

U.S. monetary policy shifts have a significant impact on Gulf markets, where most currencies are pegged to the dollar.

The Qatari index lost 0.3%, with Qatar National Bank , the Gulf's biggest lender by assets, falling 1.3%.