May 25 (Reuters) - Most stock markets in the Gulf climbed in early trading on Monday as fading geopolitical risks—buoyed by hopes of a U.S.-Iran peace deal—boosted investor appetite.

U.S. President Donald Trump announced that Washington and Tehran have "largely negotiated" an agreement to end their three-month war and reopen the critical Strait of Hormuz, which had carried a fifth of global shipments of oil and liquefied natural gas before the conflict.

However, the two sides remain at odds on several issues, with Trump saying on Sunday he had told his representatives not to rush into any deal with Iran.

Dubai's main share index .DFMGI advanced 2.4%, with blue-chip developer Emaar Properties EMAR.DU rising 3.3% and top lender Emirates NBD ENBD.DU increasing 2.8%.

In Abu Dhabi, the index .FTFADGI rose 0.9%, led by a 1.5% gain in Aldar Properties ALDAR.AD.

The Qatari index .QSI declined 0.6%, following a gain of more than 3% in the previous session.

Brent crude futures LCOc1 were down $5.09, or 4.9%, to $98.45 a barrel at 0705 GMT. O/R