Dubai, (IANS) : The price of oil gained over 1 per cent while stock prices in the Gulf retreated across the board after Saudi Arabia, the UAE, Bahrain, Egypt and Yemen cut diplomatic ties with Qatar on Monday.

Markets reacted to the escalation of the diplomatic row in the Gulf region and sent the price of oil 1.04 per cent higher to $50.47 per barrel, Xinhua news agency reported.

In Doha, the Qatar Exchange Index plummeted 7.94 per cent to hit 9,135, marking an 18-month low.

In the UAE, the Dubai financial market DFM dived 1.36 per cent one hour after opening and fell below 3,300. Bank shares in particular posted heavy losses.

Media reports indicated that all UAE airlines, including budget flyer FlyDubai and Etihad from Abu Dhabi, will stop flying to Qatar from Tuesday.

In Abu Dhabi, the UAE capital, the ADX General Index declined by 0.36 per cent, trading around 4,467.

The Bahraini All-Share Index bucked the regional slump and gained 0.58 per cent.