Updates closing prices, analyst comment

By Ateeq Shariff

June 24 (Reuters) - Most major Gulf equity markets closed lower on Wednesday, as persistent uncertainty over the durability of the U.S.-Iran accord coupled with expectations of higher interest rates weighed on investor sentiment.

The two countries, which concluded a first round of negotiations in Switzerland on Monday, gave conflicting accounts of key elements of the framework agreement signed last week to end the war, including financial incentives for Iran, control of the Strait of Hormuz and Israel's parallel war in Lebanon.

U.S. President Donald Trump said on Tuesday that Iran had agreed to nuclear inspections into "infinity," while Tehran denied making any such concession, raising doubts about the viability of the fragile peace deal.

Saudi Arabia's benchmark index .TASI fell 0.3%, with Al Rajhi Bank 1120.SE losing 1.4%.

However, Umm Al Qura for Development and Construction Co 4325.SE surged 10% and Dar Al Arkan Real Estate Development Co 4300.SE advanced 5.8%.

The kingdom's real estate authority has begun accepting applications for foreign real estate ownership, it said in a statement on Tuesday, part of a push to attract foreign investment in the kingdom.

Dubai's main share index .DFMGI edged 0.1% higher, helped by a 3.5% rise in toll operator Salik Company SALIK.DU.

In Abu Dhabi, the index .FTFADGI lost 0.3%.

Improving Middle East geopolitics may support GCC equities, helped by rising Strait of Hormuz traffic and stronger export flows despite lower oil prices. However, possible friction in U.S.-Iran nuclear talks could keep sentiment cautious and markets volatile, said Milad Azar, market analyst at XTB MENA.

The Qatari index .QSI retreated 0.8%, weighed down by a 1.8% slide in the region's biggest lender Qatar National Bank QNBK.QA.

Markets are now pricing in three Federal Reserve rate hikes this year, a sharp shift from expectations of just one before last week's policy meeting, according to the CME FedWatch Tool.

Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.

Outside the Gulf, Egypt's blue-chip index .EGX30 was down 0.1%.

Saudi Arabia	.TASI fell 0.3% to 11,007
Abu Dhabi	.FTFADGI down 0.3% to 9,993
Dubai	.DFMGI added 0.1% to 6,112
Qatar	.QSI dropped 0.8% to 10,321
Egypt	.EGX30 eased 0.1% to 51,711
Bahrain	.BAX rose 0.3% to 2,042
Oman	.MSX30 gained 0.6% to 7,358
Kuwait	.BKP lost 0.2% to 9,146