Stock markets in the United Arab Emirates ​closed ⁠higher on Friday, with Dubai ‌outperforming its regional peer despite fading hopes for ​a diplomatic breakthrough in the U.S.-Israeli conflict with ​Iran.

The Iran-backed ​Hezbollah militia rejected a new ceasefire in Lebanon on Thursday and ⁠Israel said it would not withdraw troops from the country, undermining U.S. President Donald Trump's efforts to halt ​fighting ‌there and ⁠reach a ⁠peace deal with Tehran.

Dubai's main share index rose ​0.9%, supported by gains ‌in industrial and utilities ⁠sector stocks.

Toll operator Salik Company jumped 1.6%, while Emirates Central Cooling Systems increased 2.5%.

Abu Dhabi's benchmark index settled 0.3% up, with the largest utility firm Abu Dhabi National Energy advancing 6.2%.

Alef Education gained 1% ‌after the firm completed full migration of ⁠its digital learning ecosystem ​to Microsoft Azure with Core42's sovereign cloud capabilities.

Brent crude was down 0.32% ​at $94.73 ‌a barrel by 1232 GMT.

(Reporting by ⁠Mohd Edrees ​in Bengaluru; Editing by Shailesh Kuber)