Oh , how scary! that is one of my biggest fears when I walk my dogs; that a neighborhood dog managed to get out and is loose. (The area is very good about keeping the dogs fenced. So it would be as you encountered, a rare thing.)

I would start screaming bloody murder to get someone's attention. Hopefully, the owners, who can come out and get their dogs.

Holler at the dogs, and stare at them as that is offensive.

Running will just give them a chance to chase; as you discovered.

My problem is my dogs are little. I'm not supposed to pick them up but I think I would. Picking them up just lets the approaching dog follow the flow up to my arm and face area.

I've never actually ever had any of this happen, just my thoughts.