Most Gulf markets advanced on Wednesday, led by Dubai, as optimism over a possible ceasefire increased after reports that Washington had submitted a 15-point proposal to Tehran to end the war.

U.S. President Donald Trump said on Tuesday that efforts to negotiate an end to the conflict were making progress. A source confirmed to Reuters that the United States had sent Iran the proposal, while Israel's Channel 12, citing sources, reported that Washington was seeking a month-long ceasefire to allow discussions on the plan.

Tehran denied that any direct talks had taken place, and the official IRNA news agency quoted an armed forces spokesperson on Wednesday as saying the United States was "negotiating with itself." Israel and Iran exchanged airstrikes on Wednesday.

Dubai's main share index .DFMGI jumped 3.6%, with blue-chip developer Emaar Properties EMAR.DU surging 5.5% and a top lender Emirates NBD ENBD.DU climbing 4.8%.

In Abu Dhabi, the index .FTFADGI was up 1.9%, with Aldar Properties ALDAR.AD leaping 4.4%.

The Qatari index .QSI gained 0.9%, led by a 2.2% rise in Qatar Islamic Bank QISB.QA.

Saudi Arabia's benchmark index .TASI added 0.7%, with the country's biggest lender by assets Saudi National Bank 1180.SE rising 1.7%.

Crude exports from Saudi Arabia's Red Sea port of Yanbu climbed to nearly 4 million barrels per day last week, shipping data showed, underscoring Saudi Aramco's progress in rerouting supplies through its East-West pipeline to bypass Hormuz disruptions caused by the Iran war.

Oil prices fell about 4% on hopes the U.S. proposal to Iran could help end the war and ease regional supply risks. O/R

(Reporting by Ateeq Shariff in Bengaluru; Editing by Ronojoy Mazumdar and Mrigank Dhaniwala)