From Atiq Sharif

May 7 (Reuters) - Most Gulf stock markets closed higher on Thursday, buoyed by strong corporate earnings and optimism about a possible peace deal between the United States and Iran, despite continued uncertainty over the fate of the strategically important Strait of Hormuz.

US President Donald Trump said the war with Iran might end quickly. Sources indicated that Tehran is considering a US peace proposal that would formally end the conflict but would leave key US demands—namely, Iran suspending its nuclear program and reopening the Strait of Hormuz—unresolved.

The Saudi index rose 0.8 percent, with shares of ACWA Power and Elm jumping 10 percent each.

Meanwhile, Brent crude futures fell $4.31, or 4.3 percent, to $96.96 a barrel by 1242 GMT.

Dubai's index rose 0.6 percent, driven by a 5.6 percent jump in shares of toll collector Salik and a 7.2 percent jump in shares of Empower after they announced strong quarterly profits.

The United Arab Emirates said on Wednesday that its international and defense relations and partnerships are a “purely sovereign matter,” rejecting an earlier statement by Iran that claimed Abu Dhabi’s cooperation with the United States threatens Iran’s security and national interests.

The Abu Dhabi index closed unchanged.

The Qatari index rose 0.6 percent, with Qatar Industries shares climbing 1.6 percent.

The Egyptian Stock Exchange was closed today for a public holiday.