May 7 (Reuters) - Major Gulf stock markets rose in early trading on Thursday, buoyed by strong corporate earnings and optimism about a possible U.S.-Iran peace deal despite continued uncertainty over the fate of the Strait of Hormuz.

Iran said on Wednesday it was considering a U.S. peace proposal that sources say would formally end the war, but leaves Washington’s main demands unresolved: that Tehran halt its nuclear program and reopen the Strait of Hormuz.

The Saudi index rose 0.2 percent, with shares of ACWA Power climbing 6.5 percent and shares of Elm jumping 10 percent following a sharp rise in first-quarter profits.

Dubai's index rose 0.8 percent, driven by a 7.8 percent jump in shares of Emirates Central Cooling Systems (Empower) after it announced positive quarterly earnings.

The United Arab Emirates said on Wednesday that its international and defense relations and partnerships are a "purely sovereign matter," rejecting an earlier statement by Iran that claimed Abu Dhabi's cooperation with Washington threatens Tehran's security and national interests.

The Abu Dhabi index rose 0.3 percent, with Abu Dhabi Islamic Bank shares climbing 1.4 percent.

The Qatari index rose 0.2 percent.