Updates to closing prices, analyst comment

By Ateeq Shariff

July 21 (Reuters) - Most Gulf stock markets ended higher on Tuesday, as investors weighed reports of U.S.-Iran mediation against fresh attacks and Houthi threats to impose a naval blockade on Saudi Arabia.

A senior Iranian official said on Monday that Tehran had received a mediators' proposal for a 10-day ceasefire, aimed at creating a path toward a permanent agreement to end the war that started on February 28 following U.S.-Israeli attacks on Iran.

Dubai's main share index .DFMGI rose 0.3%, with blue-chip developer Emaar Properties EMAR.DU gaining 0.9% and toll operator Salik SALIK.DU rising 1.6%.

In Abu Dhabi, the index .FTFADGI was up 0.4%.

Tensions in the region continue to weigh on investor sentiment, with military operations and disruptions in the Strait of Hormuz driving concerns, said George Pavel, general manager at Naga.com Middle East.

Still, reports of efforts to revive U.S.-Iran diplomacy could boost hopes for a ceasefire, which may improve conditions for local economies and stock markets, Pavel said.

Saudi Arabia's benchmark index .TASI fell 0.4%, hit by a 1.8% slide in Al Rajhi Bank 1120.SE, while Alinma Bank 1150.SE tumbled 4.4%, after posting lackluster second-quarter earnings and slashing its dividend.

Yemen's Iran-aligned Houthis threatened a naval blockade of Saudi Arabia, risking a wider conflict and greater disruption to energy supplies and trade. The move came even as Tehran and Washington signalled interest in renewed diplomacy, with Iran saying mediators had presented new proposals but giving no details.

Shipping companies should not load or discharge cargo at Saudi Arabian ports and such activity may result in being targeted "in any location" by Yemen's Iran-aligned Houthi militia, according to an email sent to companies by the Houthis.

The Qatari index .QSI closed 0.2% higher, with Qatar Islamic Bank QISB.QA gaining 0.6%.

Outside the Gulf, Egypt's blue-chip index .EGX30 advanced 1.6%.

Saudi Arabia	.TASI fell 0.4% to 10,699
Abu Dhabi	.FTFADGI gained 0.4% to 9,785
Dubai	.DFMGI added 0.3% to 5,812
Qatar	.QSI was up 0.2% to 10,107
Egypt	.EGX30 advanced 1.6% to 53,990
Bahrain	.BAX was up 0.1% to 1,967
Oman	.MSX30 lost 0.9% to 7,091
Kuwait	.BKP eased 0.1% to 9,040