April 28 (Reuters) - Major Gulf stock markets traded higher on Tuesday amid corporate earnings announcements, though investors remained wary of lingering geopolitical tensions.

U.S. President Donald Trump is dissatisfied with Iran's latest proposal to resolve the two-month conflict, a U.S. official said, dimming hopes for a breakthrough in a war that has disrupted energy supplies, stoked inflation, and claimed thousands of lives.

Under Tehran's latest proposal, discussion of Iran's nuclear program would be deferred until the war ends and disputes over Gulf shipping are settled.

Saudi Arabia's benchmark index .TASI gained 0.4%, with Al Rajhi Bank 1120.SE rising 1.3%.

Oil major Saudi Aramco 2222.SE rose 0.5%.

Brent crude futures for June LCOc1 climbed $2.32, or 2.1%, to $110.55 a barrel as of 0638 GMT. O/R

Dubai's main share index .DFMGI added 0.1%, helped by a 0.6% rise in Sharia-compliant lender Dubai Islamic Bank DISB.DU.

However, budget airline Air Arabia AIRA.DU dropped 0.7%.

Separately, Dubai Investments DINV.DU, whose shares fell 0.7%, is considering an initial public offering of 24% of Dubai Investments Park and is also evaluating potential listings for subsidiaries including Glass LLC, with part of the proceeds earmarked to support its dividend policy.

In Abu Dhabi, the index .FTFADGI inched 0.1% higher, with Aldar Properties ALDAR.AD rising 0.2% following an increase in quarterly profit.

The Qatari index .QSI was up 0.1% in choppy trade.

Meanwhile, Gulf Cooperation Council (GCC) economies are heading into their worst downturn since the pandemic, with several expected to contract this year due to spillover effects from the U.S.-Israel war with Iran on the region's doorstep.