Updates with closing prices and analyst comments

By Md Manzer Hussain

June 25 (Reuters) - Most stock markets in the Gulf ended lower on Thursday, pressured by weaker oil prices and growing expectations that the U.S. Federal Reserve could raise interest rates later this year.

Oil prices, a key catalyst for Gulf financial markets, extended losses to near levels last seen before the start of the Iran war, as expectations of higher Middle East supply outweighed demand concerns.

A preliminary accord last week to end the U.S.-Israeli war with Iran, which began on February 28, has allowed traffic to resume through the Strait of Hormuz, easing immediate supply risks.

High U.S. inflation, fuelled by the conflict, and a hawkish Federal Reserve have strengthened expectations of further monetary tightening. Traders are pricing in three Fed rate hikes this year and see about a 67% chance of an increase in September, according to the CME FedWatch Tool.

U.S. monetary policy has a significant bearing on Gulf markets, where most currencies are pegged to the dollar.

Dubai's main share index .DFMGI dropped 1.4%, with almost all its constituents in negative territory. Blue-chip developer Emaar Properties EMAR.DU fell 2.9%, while Dubai's largest lender Emirates NBD ENBD.DU lost 1.3%.

While a preliminary U.S.-Iran peace deal is easing immediate strains, restoring business confidence in Dubai will take time and may require more incentives, six company executives and analysts told Reuters.

In Abu Dhabi, the index .FTFADGI fell for a third straight session, closing 1.2% lower as real estate and technology shares led losses. Aldar Properties ALDAR.AD slid 3.9% and Abu Dhabi Commercial Bank ADCB.AD declined 2.4%.

Saudi Arabia's benchmark stock index .TASI eased 0.7%, with real estate stocks leading the declines. Dar Al Arkan Real Estate 4300.SE fell 5.1%, while Umm Al Qura for Development and Construction 4325.SE , known as Masar, slipped 3.5%.

Masar said on Wednesday its flagship Masar Destination project in Makkah had been approved as a zone where non-Saudis may own real estate, following Saudi Cabinet approval. The decision comes as Saudi Arabia's real estate authority has begun accepting applications for foreign property ownership, part of the kingdom's broader push to attract international investment.

The Qatari index .QSI extended losses for a sixth straight session falling 0.4%, with most stocks declining. Qatar National Bank QNBK.QA , the Gulf's largest lender, lost 1.2%, while Industries Qatar IQCD.QA fell 1%.

"While lower oil prices could act as a headwind, the geopolitical de-escalation is supporting broader risk appetite and activity in non-oil sectors, and the increasing volumes of crude exports could support the energy sector," said Joseph Dahrieh, managing director at Tickmill.

Outside the Gulf, Egypt's blue-chip index .EGX30 fell for a fourth consecutive session, closing 0.5% lower with most stocks in the red. Orascom Construction ORAS.CA dropped 7%, while Fawry for Banking Technology FWRY.CA declined 1.6%.

SAUDI ARABIA	.TASI down 0.7% to 10,933
DUBAI	.DFMGI dropped 1.4% to 6,025
ABU DHABI	.FTFADGI fell 1.2% to 9,876
QATAR	.QSI down 0.4% to 10,282
KUWAIT	.BKP lost 0.2% to 9,126
BAHRAIN	.BAX up 0.3% to 2,042
OMAN	.MSX30 down 0.4% to 7,317
EGYPT	.EGX30 fell 0.5% to 51,443