Corrects paragraph 3 to say that the assurances were that the group would not attack Israel, not that it would attack

By Ateeq Shariff

June 2 (Reuters) - Most Gulf stock markets ended lower on Tuesday as uncertainty over U.S.-Iran peace negotiations weighed on risk sentiment.

On Monday, U.S. President Donald Trump said negotiations with Iran were still underway, despite an earlier report by Iran's Tasnim news agency claiming Tehran had suspended the indirect talks with Washington.

Trump also said on Monday that he had communicated with the Iran-backed Lebanese militia Hezbollah through intermediaries, and obtained assurances the group would not attack Israel.

Dubai's main share index .DFMGI dropped 0.7%, with top lender Emirates NBD ENBD.DU retreating 1.7%.

In an interview with CNBC, Trump said he would not be concerned if the talks ended. However, he later said in a social media post that discussions were continuing. He also told ABC News that he expected an agreement to be reached within the next week.

In Abu Dhabi, the index .FTFADGI was down 0.3%.

The Qatari index .QSI lost 0.3%, with Qatar Islamic Bank QISB.QA falling 1.6%.

Investors continue to monitor developments in the region closely, said Milad Azar, market analyst at XTB MENA.

Uncertainty over the status of diplomatic talks, coupled with ongoing geopolitical tensions, may continue to restrain risk appetite, he said, adding that the continued closure of the Strait of Hormuz could further weigh on market sentiment.

However, expectations of progress toward a potential resolution may help limit downside risks and also channel a possible rebound, according to Azar.

Saudi Arabia's benchmark index .TASI, however, edged 0.1% higher, helped by a 2.2% rise in petrochemical maker Saudi Basic Industries Corp 2010.SE

Brent crude futures LCOc1 were down $1.13, or 1.2%, at $93.85 a barrel at 1130 GMT. O/R

Outside the Gulf, Egypt's blue-chip index .EGX30 edged 0.1%.

Saudi Arabia	.TASI added 0.1% to 11,017
Abu Dhabi	.FTFADGI fell 0.3% to 9,621
Dubai	.DFMGI dropped 0.7% to 5,732
Qatar	.QSI lost 0.3% to 10,407
Egypt	.EGX30 up 0.1% to 52,927
Bahrain	.BAX gained 0.4% to 1,987
Oman	.MSX30 down 0.3% to 7,776
Kuwait	.BKP was flat at 9,234