Adds closing prices and analyst comments

By Md Manzer Hussain

BENGALURU, May 20 (Reuters) - Most Gulf stock markets ended lower on Wednesday as investors stayed cautious over the outcome of U.S.-Iran peace talks and volatile oil prices.

Iran threatened on Wednesday to widen the war beyond the Middle East if the United States attacks again, after U.S. President Donald Trump said he had come within an hour of ordering fresh strikes before delaying the decision to allow more time for diplomacy, while Vice President JD Vance also pointed to progress in talks.

The shifting U.S. stance has kept oil prices volatile. Brent crude futures fell about 3% to $108.31 a barrel by 1059 GMT.

Dubai's benchmark stock index .DFMGI fell 0.6%, with losses across most sectors. Blue-chip developer Emaar Properties EMAR.DU shed 1.1%, while low-cost carrier Air Arabia AIRA.DU slipped 1.3%.

The Abu Dhabi benchmark index .FTFADGI dropped 0.5%, weighed down by technology, healthcare and financial stocks. First Abu Dhabi Bank FAB.AD, the UAE's largest lender, lost 2.6%, while Aldar Properties ALDAR.AD fell 0.7%.

"While local economic resilience could help limit downside risk, a clear move toward a resolution in the region could drive a strong rebound, particularly for the real estate sector," said Joseph Dahrieh, managing director at Tickmill.

The Omani benchmark index .MSX30 fell for a ninth straight session, sliding 3.3%, with nearly all stocks in negative territory. OQ Base Industries OQBI.OM dropped 9.7% and Asyad Shipping Company ASCO.OM lost 7.1%.

The index extended recent losses amid regional geopolitical uncertainty, weaker global sentiment and profit-taking after a strong rally, Dahrieh added.

Qatar's benchmark index .QSI eased 0.6%, with most stocks trading lower. Qatar Islamic Bank QISB.QA fell 1.4%, while QatarEnergy units, Industries Qatar IQCD.QA and Mesaieed Petrochemical MPHC.QA, lost 0.5% and 1.5%, respectively.

Qatar's foreign ministry spokesperson said on Tuesday there were no special arrangements in place for energy exports, but that the closure of the Strait of Hormuz had added complexity to regional supply chains.

Saudi Arabia's benchmark index .TASI was little changed. Banque Saudi Fransi 1050.SE fell 3.8%, while Makkah Construction 4100.SE gained 5.3%.

Dar Al-Balad Business Solutions jumped 28.2% to 12.50 riyals on debut. The IT solutions provider's IPO was priced at the top of its range at 9.75 riyals per share, raising about 205 million riyals.

Outside the Gulf, Egypt's blue-chip index .EGX30 slipped 1.6%, with all stocks in the red. Commercial International Bank COMI.CA fell 1.3%, and EFG Holding HRHO.CA dropped 2.7% after reporting a 14% decline in first-quarter net profit attributable to shareholders.

SAUDI ARABIA	.TASI ended flat at to 10,986
DUBAI	.DFMGI down 0.6% to 5,627
ABU DHABI	.FTFADGI fell 0.5% to 9,598
QATAR	.QSI down 0.6% to 10,353
KUWAIT	.BKP lost 0.1% to 9,131
BAHRAIN	.BAX ended flat at to 1,926
OMAN	.MSX30 dropped 3.3% to 7,243
EGYPT	.EGX30 fell 1.6% to 51,937