By Ateeq Shariff

May 24 (Reuters) - Most Gulf stock markets closed

sharply higher on Sunday as geopolitical risk premiums eased on

news that Washington and Iran were nearing a peace deal that

would also reopen the strategic Strait of Hormuz.

U.S. President Donald Trump announced that Washington and Iran

have "largely negotiated" a memorandum of understanding to end

their three-month-old war and reopen the strait, the vital

shipping passage whose closure has sparked a global energy

crisis.

Trump said on his Truth Social platform that the final

details of the agreement were currently being discussed and

would be announced shortly.

In Qatar, the main share index jumped 3.2% - its

biggest intraday gain since April 8 - as all its constituents

were in positive territory including Qatar National Bank

, which gained 4.7%.

Although a deal securing the fragile ceasefire would offer

market relief, the global energy crisis - and the resulting high

costs of fuel, fertilizer, and food - is expected to persist in

the near term.

Bahrain's main index advanced 1.7%, while Kuwait's

was up 2%.

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

1.5% higher, with Commercial International Bank rising

3.4%.

The Saudi market remained closed ahead of the upcoming Eid

break.

Qatar advanced 3.2% to 10,707

Egypt was up 1.5% to 52,861

Bahrain added 1.7% to 1,962

Oman climbed 1% to 7,709

Kuwait rose 2% to 9,373

(Reporting by Ateeq Shariff in Bengaluru; Editing by Emelia

Sithole-Matarise)