June 4 (Reuters) - Major Gulf stock markets edged higher in early trading on Thursday after Israel and Lebanon agreed to a ceasefire, boosting optimism about a broader deal to end the U.S.-Iran trade war even as tensions persist.

A joint statement issued by the US State Department following negotiations in Washington stated that a ceasefire between Israel and Lebanon requires the Iranian-backed Hezbollah group to completely cease fire and remove all its elements from the southern Litani sector.

US President Donald Trump indicated on Wednesday that progress in negotiations with Iran could be made by early next week.

Earlier, Iran launched an attack on Kuwait that damaged an airport and injured dozens, while the US military launched raids near the Strait of Hormuz.

Ahmed Assiri, an economist at Pepperstone, said that markets remained cautious, focusing again on developments related to Iran and the Strait of Hormuz after a period of easing tensions and notable progress in negotiations.

The Saudi benchmark index rose 0.1 percent in volatile trading.

Dubai’s main index also rose 0.3 percent, with Dubai Islamic Bank shares climbing 1.3 percent and Salik toll company shares rising 1.3 percent.

In Abu Dhabi, the index rose 0.2 percent.

The index in Qatar rose 0.3 percent, with shares of Qatar Petrochemical Industries Company climbing 0.3 percent.

Meanwhile, Brent crude futures fell 87 cents, or 0.89 percent, to $96.92 a barrel by 0458 GMT.