Adds closing prices

By Ateeq Shariff

May 7 (Reuters) - Most Gulf stock markets ended higher on Thursday, supported by strong corporate earnings and optimism over a potential U.S.-Iran peace deal, although uncertainty persisted over the fate of the strategically vital Strait of Hormuz.

U.S. President Donald Trump said the war with Iran could end quickly as Tehran reviewed a U.S. peace proposal that, according to sources, would formally bring the conflict to a close while leaving unresolved Washington's key demands for Iran to halt its nuclear programme and reopen the Strait of Hormuz.

Saudi Arabia's benchmark index .TASI rose 0.8%, with ACWA Power 2082.SE surged 10%, while Elm Co 7203.SE, also, jumped 10% following a steep rise in first-quarter profit.

Meanwhile, Brent crude futures LCOc1 fell $4.31, or 4.3%, to $96.96 a barrel by 1242 GMT. O/R

Dubai's main share index .DFMGI gained 0.6%, led by 5.6% surge in toll operator Salik SALIK.DU and a 7.2% surge in Emirates Central Cooling Systems EMPOWER.DU after upbeat quarterly earnings.

Meanwhile, the United Arab Emirates said on Wednesday that its ties and its international and defence partnerships were a "purely sovereign matter," rejecting an earlier statement by Iran that Abu Dhabi's cooperation with the U.S. threatened Iran's security and national interests.

In Abu Dhabi, the index .FTFADGI finished flat.

The Qatari index .QSI added 0.6%, with petrochemical maker Industries Qatar IQCD.QA gaining 1.6%.

Egyptian bourse was closed for a public holiday.

Saudi Arabia	.TASI rose 0.8% to 11,031
Abu Dhabi	.FTFADGI was flat at 9,876
Dubai	.DFMGI gained 0.6% to 5,932
Qatar	.QSI added 0.6% to 10,714
Bahrain	.BAX lost 0.7% to 1,942
Oman	.MSX30 added 0.2% to 8,351
Kuwait	.BKP eased 0.1% to 9,429