MIDEAST-STOCKS-Major Gulf markets in red on Iran jitters

Jan 29 (Reuters) - Major stock markets in the Gulf fell in early trade on Thursday, as concerns grew that the U.S. could launch military action against Iran, raising fears that the Gulf nations would be the first targets for Iranian retaliation. The deployment of a U.S. aircraft carrier and supporting warships to the Middle East this week has broadened U.S. President Donald Trump’s options for potential military action, following his repeated threats to intervene over Iran’s crackdown. Saudi Arabia’s benchmark index (.TASI) eased 0.1%, hit by a 0.4% fall in Al Rajhi Bank (1120.SE) and a 2% decline in ACWA Power (2082.SE) . In mid-January, Saudi Arabia, Qatar, Oman, and Egypt urged Washington not to carry out a strike on Iran. Saudi Crown Prince Mohammed bin Salman also told Iranian President Masoud Pezeshkian that Riyadh would not permit its airspace or territory to be used for any military action against Tehran. However, oil behemoth Saudi Aramco (2222.SE) gained 0.8%. Crude prices - a catalyst for the Gulf’s financial markets - extended their recent rally on worries any U.S. military action against Iran could hamper global supplies. Among other gainers, Bank AlJazira (1020.SE) advanced more than 3%, after posting a strong increase in annual net profit and proposing a 0.50 riyal-per-share cash dividend for the second half—its first in three and a half years. Dubai’s main share index (.DFMGI) dropped 0.4%, weighed down by a 1.3% fall in blue-chip developer Emaar Properties (EMAR.DUJ) . In Abu Dhabi, the index (.FTFADGI) lost 0.2%. The UAE said on Monday it will not allow its airspace, territory, or waters to be used for hostile military action against Iran, reaffirming its neutrality and commitment to regional stability. The Qatari index (.QSI) lost 0.2%, with Qatar National Bank (QNBK.QA) losing 0.4%.