From Muhammad Munther Hussein

BENGALURU, May 21 (Reuters) - Most Gulf stock markets rose in early trading on Thursday, supported by expectations that the United States is nearing a deal with Iran to end the war in the Middle East, while higher oil prices also helped improve sentiment.

Investors are watching closely for any signs of progress in talks between the United States and Iran after President Donald Trump said on Wednesday that negotiations were in their final stages, but warned of further attacks if Tehran did not agree to a deal. He said Washington was prepared to wait a few days for the "right response."

Dubai’s benchmark index rose 1 percent, recovering from losses incurred in the previous session, with shares of Emaar Properties climbing 1.3 percent and Dubai Investments rising 2.5 percent.

Dubai Investments reaffirmed its plans to list its Dubai Investments Park unit before the end of the year, while its pharmaceutical unit, Global Pharma, signed seven memoranda of understanding related to research, manufacturing and sustainability.

Abu Dhabi's benchmark index rose 0.2 percent, supported by a 1 percent gain in shares of Aldar Properties and a 0.6 percent rise in shares of ADNOC Gas.

Sultan Al Jaber, CEO of Abu Dhabi National Oil Company (ADNOC), said on Wednesday that the new crude oil pipeline bypassing the Strait of Hormuz is 50 percent complete. He added that global oil flows may need at least four months to recover to 80 percent of pre-conflict levels after the end of the Iran-Iraq War.

The Qatari index rose 0.6 percent, with Qatar Islamic Bank shares advancing 1 percent. Shares of Industries Qatar, a subsidiary of Qatar Energy, also rose 1 percent, and Mesaieed Petrochemical Holding Company shares climbed 1.3 percent.

Qatar Energy said on Wednesday it had acquired stakes in three offshore exploration blocks in Uruguay from a Shell subsidiary, marking its first exploration and production ventures in the South American country. Financial details were not disclosed.

The Saudi index declined slightly, affected by a 2.3 percent drop in shares of ACWA Power and a 0.5 percent decrease in shares of Saudi Aramco.

Analysts said the oil giant is expected to consume more imported fuel for power generation this summer after losing natural gas supplies from oil fields shut down due to the fallout from Iran’s war on exports.

Oil prices rose by more than one percent, with Brent crude trading at $106.29 a barrel by 0618 GMT, due to uncertainty over reaching a deal with Iran and a drop in US inventories.