Middle Eastern stock markets fell on Monday, with Saudi’s main share index trading lower for a fourth straight session, as weak oil prices dampened risk sentiment for the region.

Oil prices shed as much as $4 a barrel, extending losses from last week, as diplomatic efforts to end the war in Ukraine were stepped up and markets braced for US rate hikes.

Brent crude futures were last down by $3.05 or 2.7% at $109.62 a barrel at 0351 GMT.

Most share markets firmed and oil prices slid on hopes for progress in Russian-Ukraine peace talks, while bond markets braced for a rate increase in the United States and UK this week.

Ukrainian and Russian negotiators are set to talk again on Monday via video link after both sides cited progress.

Energy-heavy Saudi Arabia’s benchmark share index fell 0.4%, with oil giant Saudi Aramco down nearly 1%.

Shares of Aramco have risen more than 10% so far this year as crude prices soared for days after Moscow invaded its neighbour. Russia’s invasion, which Moscow calls a “special operation,” has roiled energy markets globally.

Iran has suspended talks with regional rival Saudi Arabia, a website affiliated to Iran’s top security body reported on Sunday, without giving a reason for the decision that comes as a fifth round of negotiations was due to start this week.

Dubai’s main share index fell 0.4%, pressured by a 2% slump in top lender Emirates NBD and a 0.8% drop in sharia-compliant lender Dubai Islamic Bank.

In Abu Dhabi, the index was down 0.4%, hit by a 1.3% decline in the country’s largest lender First Abu Dhabi Bank.

The Qatari index eased 0.2%, with Barwa Real Estate Co sliding about 6%.