MIDEAST STOCKS-Most Gulf markets retreat as Israel, Iran strikes continue

By Ateeq Shariff

June 19 (Reuters) - Most stock markets in the Gulf closed lower on Thursday on the seventh day of the Israel-Iran conflict and as U.S. President Donald Trump kept the world guessing about whether the U.S. would join Israel in airstrikes.

Dubai's main share index .DFMGI lost 0.7%, hit by a 2.3% slide in sharia-compliant lender Dubai Islamic Bank DISB.DU and a 1.2% decrease in blue-chip developer Emaar Properties EMAR.DU.

In Saudi Arabia, the benchmark index .TASI reversed early losses to edge 0.2% higher, helped by a 4.9% jump in Umm Al Qura Development and Construction 4325.SE.

However, the index posted a weekly loss of 2.1%.

In Abu Dhabi, the index .FTFADGI concluded 0.8% down.

Overnight, the U.S. Federal Reserve held rates steady as expected but retained projections for two quarter-point rate cuts this year.

The Fed's decisions impact monetary policy in the Gulf, where most currencies, including the riyals, are pegged to the U.S. dollar.

The Qatari index .QSI fell 0.8%, with Qatar Islamic Bank QISB.QA losing 1.3%.

Brent crude futures LCOc1 rose $1.06, or 1.4%, to $77.76 a barrel by 1151 GMT.

Outside the Gulf, Egypt's blue-chip index .EGX30 dropped 1.9%, as most of its constituents were in negative territory including Talaat Moustafa Group Holding TMGH.CA, which was down 5.8%.