Most major stock markets in the Gulf fell in early trade on Monday as consolidation continued following recent gains, although the Abu Dhabi index edged higher in a choppy trade.

Saudi Arabia's benchmark index dropped 0.6%, on course to extend losses after a nine-month high, weighed down by a 1.1% drop in Al Rajhi Bank and a 2.3% decline in Saudi National Bank.

Iran's foreign ministry spokesperson said on Monday that a normalisation of ties between Saudi Arabia and Israel would harm regional peace and stability.

U.S. President Joe Biden had said on Friday that a deal may be on the way after talks that his national security adviser had with Saudi officials in Jeddah aimed at fixing relations between Saudi Arabia and Israel.

In Abu Dhabi, the index added 0.1%, helped by a 0.7% gain by the biggest lender, First Abu Dhabi Bank.

The Qatari index fell 0.3%, on track to snap a 13-day winning streak, with petrochemical maker Industries Qatar losing 1.8% and Commercial Bank retreating 0.8%.

Oil prices - a driver for the Gulf's financial markets - edged lower, but were still near three-month highs and were set to post their biggest monthly gains in more than a year on expectations that Saudi Arabia would extend voluntary output cuts into September, tightening global supply.

Dubai's main share index eased 0.1%, hit by a 1.3% drop in toll operator Salik Co.

(Reporting by Ateeq Shariff in Bengaluru; Editing by Kevin Liffey)