* Dubai index ends up 1.6%, Abu Dhabi gains 1.1%

* Saudi index flat, Qatar down 1.4%

(Rewrites with closing prices)

By Mohd Edrees

March 24 (Reuters) - Gulf markets ended mixed on

Tuesday, with Qatar extending losses while other bourses

steadied as investors parsed conflicting signals on potential

U.S.-Iran talks.

Sentiment was volatile after U.S. President Donald Trump

delayed strikes on Iran's energy infrastructure and talked of

"productive" discussions to end the U.S-Israeli war with Iran,

but Tehran dismissed that comment as "fake news".

The U.S. will continue strikes on Iran, with the pause

applying only to energy sites, Semafor reported, citing a U.S.

official. Israel was not part of Washington's contacts with

Tehran, the report added.

The conflict has driven sharp rises in energy prices,

disrupted air travel and hit shipping through the vital Strait

of Hormuz route for oil and LNG exports.

Dubai's main index rose as much as 4% before

closing 1.6% higher, lifted by gains in heavyweight real estate

and banking stocks. Emirates NBD Bank jumped 7.3%, its

second-biggest intraday gain in more than a year, while Emaar

Properties added 4%.

In Abu Dhabi, the index gained 1.1%. Abu Dhabi

National Energy rose 3% and Two Point Zero Group

climbed 5.1%.

The Dubai index trimmed year-to-date losses to 9.5%, while

Abu Dhabi is down 4.7%, LSEG data shows.

Any signs of easing tensions could lift equities further

given solid domestic fundamentals in the UAE, said George Pavel,

general manager at Naga.com Middle East.

Saudi Arabia's benchmark erased earlier declines to

close 0.03% higher, supported by banking stocks. Al Rajhi Bank

gained 3.3% and Saudi National Bank rose

3.1%. Saudi Aramco fell 1.5% and Saudi Arabian Mining

dropped 6.8%.

Crude oil exports from Saudi Arabia's western Yanbu port

rose to nearly 4 million barrels per day last week, up sharply

from levels before the Iran war, shipping data shows.

Qatar's index slid 1.4%, extending losses from its

previous session on March 18, led by financial and energy

stocks. Qatar National Bank fell 3.5% and Qatar Gas

Transport (Nakilat) lost 5.4%. Doha is not mediating

between Washington and Tehran but supports all diplomatic

channels to end the war, its foreign ministry said.

Oman's index gained 1.9% and Bahrain's edged

0.2% higher. Boursa Kuwait slipped 0.3%.

Outside the Gulf, Egypt's blue-chip index dropped

1.4%, with Commercial International Bank COMI.CA down 4.3%.

With the war ongoing and shipments of about one-fifth of

global oil and LNG through the Strait of Hormuz still

restricted, oil prices resumed their climb. Brent crude was up

3% at $102.97 a barrel by 1225 GMT.