* Crude prices jump 6%

* Moody's downgrades Bahrain, Iraq outlooks to negative,

UAE seeks US financial backstop

* Thailand plans $15.6 billion emergency borrowing to

counter economic fallout, deputy PM says

* Romanian broad ruling coalition parties must continue

despite tensions, president says

By Johann M Cherian

April 20 (Reuters) - Stocks and currencies across most

emerging markets were steady on Monday, as escalation in the

Middle East tensions kept investors focused on the fate of the

two-week ceasefire between the United States and Iran.

The U.S. said on Sunday it seized an Iranian cargo ship that

tried to run its blockade and Iran vowed to retaliate. Iran also

said there were no plans for a second round of negotiations with

the U.S., a day before the ceasefire was due to expire.

Crude prices, a key driver for emerging markets, jumped 6%

to $95 a barrel amid uncertainty over shipments through the

Strait of Hormuz, a vital route for global energy supplies.

"My prior working assumption that neither side was actively

seeking a re-escalation in hostilities... is now in some doubt

after renewed attacks on commercial shipping over the weekend,"

said Michael Brown, senior research strategist at Pepperstone.

"Still, I'd wager that once more President Trump's threats

to 'knock out' infrastructure in Iran are an example of the

now-familiar 'escalate to de-escalate' negotiating gambit."

MSCI's index tracking equities in developing economies

edged up 0.2%, with heavyweight China stocks

doing most of the lifting as investors cheered new

domestic market rules.

However, gauges for ASEAN stocks and central

and eastern Europe lost 0.1% and 2%,

respectively.

An index tracking EM currencies was flat

against the dollar, while currencies of net energy importers

such as India's rupee, South Africa's rand and

South Korea's won each weakened 0.5%.

Over a month-long halt to oil rents and uncertainty over the

resumption of full energy production is starting to hurt the

Middle East economies.

The United Arab Emirates began discussions with the U.S.

about securing a financial backstop, in case the U.S.-Israeli

war with Iran sends the Gulf nation into a deeper crisis, a

weekend report said.

UAE's bonds were broadly steady,

while stocks slipped 0.5%.

Over the weekend, ratings agency Moody's downgraded the

outlook of Bahrain and Iraq to 'negative'. Both countries'

hard-currency bonds were marginally

lower.

Countries continue to explore ways to deal with threats to

energy security, with Thailand planning an emergency decree to

borrow $15.6 billion to address economic issues, according to a

deputy prime minister.

Thailand had been grappling with declining tourism, further

exacerbated by the conflict. The baht slipped 0.3% and is

down 2% this year.

In Poland, Finance Minister Andrzej Domanski said that he

expects the reduction in fuel tax rates that are currently in

effect until the end of April to also apply in the 'first weeks'

of May, but that there was no need to amend the state budget.

The zloty was flat.

Romania's leu was steady against the euro and has

depreciated over 1% this year. The country's hard-currency bonds

were marginally lower and

have logged losses so far this year.

The biggest party of Romania's broad ruling coalition of

four pro-European Union parties will likely call for Prime

Minister Ilie Bolojan's resignation on Monday over repeated

internal differences on spending cuts. However, President

Nicusor Dan said that the coalition will have to continue to

govern.