Updates to closing prices

By Ateeq Shariff

June 4 (Reuters) - Gulf stock markets ended mixed on Thursday after Israel and Lebanon agreed to implement a ceasefire, fueling optimism about a broader deal to end the U.S.-Iran conflict, although regional tensions persisted.

The Israel-Lebanon ceasefire is contingent on a complete cessation of fire from the Iran-aligned Hezbollah militia and the evacuation of all its operatives from the South Litani Sector, a joint statement released by the U.S. State Department said following negotiations in Washington.

U.S. President Donald Trump suggested on Wednesday that there could be progress in negotiations with Iran as soon as this weekend.

Earlier, Iran struck Kuwait, damaging its airport and injuring dozens, while the U.S. military carried out strikes near the Strait of Hormuz.

Markets stayed cautious as attention returned to developments involving Iran and the Strait of Hormuz after a period of easing tensions and perceived progress in negotiations, said Ahmad Assiri, research strategist at Pepperstone.

Saudi Arabia's benchmark index .TASI eased 0.1%, hit by a 0.5% fall in Saudi National Bank 1180.SE, the country's biggest lender by assets, and a 0.4% decrease in oil major Saudi Aramco 2222.SE.

Brent futures LCOc1 were down $3.05, or 3.1%, at $94.76 a barrel at 1224 GMT. O/R

Shares of Saudi Arabia's Kingdom Holding Company 4280.SE retreated 5%. The stock recently jumped as investor enthusiasm grew over its stake in Elon Musk's soon-to-be-listed SpaceX SPCX.O.

Dubai's main share index .DFMGI gained 0.6%, with blue-chip developer Emaar Properties EMAR.DU.

In Abu Dhabi, the index .FTFADGI finished flat.

The Qatari index .QSI fell 0.6%, with the Gulf's biggest lender Qatar National Bank QNBK.QA losing 1.1%.

Outside the Gulf, Egypt's blue-chip index .EGX30 was up 0.2%.

Saudi Arabia	.TASI eased 0.1% to 10,990
Abu Dhabi	.FTFADGI was flat at 9,585
Dubai	.DFMGI rose 0.6% to 5,718
Qatar	.QSI dropped 0.7% to 10,336
Egypt	.EGX30 was up 0.2% to 52,653
Bahrain	.BAX eased 0.1% to 1,982
Oman	.MSX30 down 0.2% to 7,657
Kuwait	.BKP added 0.3% to 9,224