Adds closing prices, analyst comment

By Ateeq Shariff

May 25 (Reuters) - Most stock markets in the Gulf ended higher 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 on Sunday 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, and have played down hopes of an imminent breakthrough.

Dubai's main share index .DFMGI advanced 1.1%, with blue-chip developer Emaar Properties EMAR.DU rising 2.6% and Parkin Company PARKIN.DU - which oversees public parking operations in the Emirates - increasing 3.6%.

In Abu Dhabi, the index .FTFADGI rose 0.5%, led by a 2.4% gain in ADNOC Gas ADNOCGAS.AD.

Sentiment across GCC stock markets improved as the region moved closer to a possible diplomatic agreement to ease tensions and reopen the Strait of Hormuz, said Milad Azar, market analyst at XTB MENA.

While investors are likely to keep a close watch on further developments in the talks, regional equities could gain support if risk appetite continues to improve, Azar added.

Bahrain's .BAX and Oman's .MSX30 main indexes were both up 0.9%, extending gains from the previous session.

The Qatari index .QSI declined 1.1%, following a gain of more than 3% in the previous session, hit by a 2.7% slide in petrochemical maker Industries Qatar IQCD.QA.

Brent crude futures LCOc1 were down $6.01, or 5.8%, at $97.53 a barrel by 1125 GMT. O/R

Outside the Gulf, Egypt's blue-chip index .EGX30 retreated 0.4%.

The Saudi market remained closed ahead of the upcoming Eid break.

Abu Dhabi	.FTFADGI rose 0.5% to 9,702
Dubai	.DFMGI gained 1.1% to 5,757
Qatar	.QSI dropped 1.1% to 10,592
Egypt	.EGX30 down 0.4% to 52,659
Bahrain	.BAX added 0.9% to 1,979
Oman	.MSX30 up 0.9% to 7,775
Kuwait	.BKP fell 0.7% to 9,304