Major stock markets in the Gulf fell in early trade on Monday, with the Saudi index extending losses for the second session in a row, as oil prices tumbled.

Crude prices - a key catalyst for the Gulf’s financial markets - slid around $1 a barrel to near two-month lows as supply fears receded, while concerns over fuel demand from China and U.S. dollar strength weighed on prices.

New COVID case numbers in China remained close to April peaks as the country battles outbreaks nationwide and in major cities, prompting officials to ask residents to stay home.

Chinese blue chips and the broader Asia-Pacific index ex-Japan fell more than 1% in early trade.

Gulf indexes fared relatively better.

Gulf bourses slide on Fed rate hike prospects; Egypt edges up

Saudi Arabia’s benchmark index fell 0.4%, hit by a 0.5% drop in Dr Sulaiman Al-Habib Medical Services and a 0.2% decrease in Al Rajhi Bank.

However, providing some support, Dar Al Arkan Real Estate Development Co rose 1.8% on signing an agreement with former U.S. President Donald Trump’s company to use the Trump Brand for its $4 billion project in the Gulf state of Oman.

Dubai’s main share index dropped 0.3%, weighed down by a 0.7% fall in sharia-compliant lender Dubai Islamic Bank.

In Abu Dhabi, the index lost 0.4%, with the country’s biggest lender First Abu Dhabi Bank losing 0.8%.

The Qatari index declined 1%, with most index constituents in negative territory, including Commercial Bank, which fell 3.3%.