MIDEAST STOCKS-Most Gulf stocks in red on Houthi attack and Hormuz shipping slump

Sept 15 (Reuters) - Most Gulf stock markets fell in early Tuesday trade as a fresh Houthi assault on Saudi Arabia and a sharp drop in shipping through the Strait of Hormuz stoked fears that the regional conflict could widen further.

Saudi Arabia's benchmark index .TASI dropped 0.8%, weighed down by a 0.8% decrease in Al Rajhi Bank 1120.SE and a 0.5% fall in oil major Saudi Aramco 2222.SE.

Yemeni officials said the Houthis struck the Khamis Mushait airbase in southern Saudi Arabia with missiles and drones, damaging hangars, radar systems, runways and ammunition depots. The group said the attack was retaliation for Saudi-led strikes in Yemen, as Riyadh weighed its response to the Houthis' rapid advance.

The escalation has heightened fears that the conflict could spread across the Middle East, threatening energy infrastructure and global oil supplies. Gulf Arab states have postponed planned talks with Iran, adding to diplomatic strains after Saudi Arabia blamed Iran-backed forces for a series of attacks.

Friday's strikes on Saudi Arabia, which Riyadh blamed on Iran-aligned fighters in Iraq, disrupted the kingdom's East-West pipeline, a vital export route that allows crude to bypass the blockaded Strait of Hormuz.

Shipping through the strait has slowed sharply since the Iran war began on February 28, deepening concerns over supply disruptions and the economic fallout of a broader regional conflict.

Dubai's main share index .DFMGI eased 0.2%, with sharia-compliant lender Dubai Islamic Bank DISB.DU losing 0.5%.

In Abu Dhabi, the index .FTFADGI was down 0.2%.

The Qatari index .QSI fell 0.3%, with the Gulf's biggest lender, Qatar National Bank QNBK.QA.