June 5 (Reuters) - The UAE stock markets closed higher on Friday, with Dubai's index outperforming its regional counterparts despite fading hopes for diplomatic progress in the US-Israeli standoff with Iran.

The Iranian-backed Hezbollah group rejected a new ceasefire in Lebanon on Thursday, and Israel said it would not withdraw its forces from the country, undermining US President Donald Trump's efforts to halt the fighting and reach a peace agreement with Tehran.

The main index in the Dubai market rose 0.9 percent, supported by gains in the industrial and utilities sectors.

Shares of Salik toll services rose 1.6 percent, while shares of Emirates Central Cooling Systems Corporation climbed 2.5 percent.

Abu Dhabi's main index rose 0.3 percent at settlement, with shares of Abu Dhabi National Energy Company climbing 6.2 percent.

Shares of the Alef platform rose 1 percent after the company completed the migration of its entire digital education system to the Microsoft Azure platform, leveraging Core 42's sovereign cloud computing capabilities.

Brent crude fell 0.32 percent to $94.73 a barrel by 12:32 GMT.