By Ateeq Shariff

June 7 (Reuters) - Most Gulf stock markets closed lower on

Sunday after a fresh escalation clouded efforts to end the war

between the U.S. and Iran.

The U.S. military said its forces struck Iranian coastal

radar installations on Saturday after intercepting drones

launched by Iran towards the Strait of Hormuz.

Saudi Arabia's benchmark index fell 0.6%, hit by a

3.1% slide in Saudi Arabian Mining Company and a 0.6%

drop in oil major Saudi Aramco.

On Friday, Brent crude futures settled at $93.09 a barrel,

down 2%, after traders took comfort from signs that the risk of

renewed conflict between the U.S. and Iran was easing.

Kingdom Holding Company fell 3%, extending losses.

The stock recently jumped as investor enthusiasm grew over its

stake in Elon Musk's soon-to-be-listed SpaceX.

Qatar's index eased 0.3%, with Qatar National Bank

, the Gulf's biggest lender, retreating 1.2%.

Kuwait's bourse slipped 0.5%, while Bahrain's

edged up 0.1%.

Kuwait's army said on Saturday it engaged seven ballistic

missiles that passed over residential areas, causing material

damage but no casualties. In Bahrain, sirens sounded and

residents were urged to seek shelter. Both countries condemned

the strikes.

Outside the Gulf, Egypt's blue-chip index fell

0.9%.

Saudi Arabia fell 0.6% to 10,929

Qatar eased 0.3% to 10,305

Egypt down 0.9% to 52,165

Bahrain added 0.1% to 1,983

Oman dropped 1.9% to 7,519

Kuwait lost 0.5% to 9,181