(Updated at 10:15 a.m. ET (1415 GMT))

* Global equities gain on hopes of an end to Iran

conflict

* STOXX 600 rises on day, still set for worst month since

2022

* Euro zone inflation rises on oil shock, data shows

By Chris Prentice and Elizabeth Howcroft

NEW YORK/PARIS, March 31 (Reuters) - Global shares rose

on Tuesday and Brent crude oil prices were poised for a record

monthly increase, as traders came to the end of a tumultuous

March dominated by the Iran war.

Iran attacked a fully-loaded oil tanker off Dubai early on

Tuesday after President Donald Trump warned the U.S. would

obliterate Iran's energy plants and oil wells if it does not

open the Strait of Hormuz.

Still, markets got a lift from a Wall Street Journal report

that Trump had told aides he is willing to end the military

campaign even if the strait remains largely closed.

The war, which began with the U.S. and Israel launching

coordinated strikes against Iran on February 28, has sent

shockwaves across global markets and raised the risk of a

worldwide recession.

MSCI's gauge of stocks across the globe

rose 10.42 points, or 1.08%, to 971.29.

"We're in an oversold condition and then that coupled with

this element of potentially encouraging news has helped to shape

the bounce that we're seeing today," said Fiona Cincotta, senior

market analyst at City Index. She cautioned, however, that the

move should be treated carefully.

On Wall Street, the Dow Jones Industrial Average rose

1.21% to 45,764.14, the S&P 500 added 1.52% to 6,440.34

and the Nasdaq Composite climbed 2.02% to 21,214.90.

The pan-European STOXX 600 index rose 0.91%, and

Europe's broad FTSEurofirst 300 index gained 0.85%.

But the STOXX 600 remained on track for its steepest monthly

loss since June 2022, a break from its previous eight months of

gains.

Equity markets are "taking the U.S. administration at their

word, that they're going to end the war," said Colin Graham,

head of multi-asset strategies at Dutch asset manager Robeco.

"They haven't moved to day-two where the Strait of Hormuz

could still be closed."

INFLATION AND GROWTH FEARS

Brent crude futures were up nearly 5% on the day at $118.38

a barrel, on track for their biggest monthly gain on

record.

U.S. West Texas Intermediate futures meanwhile fell 0.59% to

$102.27.

Oil prices have surged as a result of the war, due to Iran's

effective closure of the Strait of Hormuz, which carries about a

fifth of the world's oil and liquefied natural gas. The average

U.S. retail price of gasoline hit $4 a gallon on Monday.

The oil shock meant euro zone inflation jumped past the European

Central Bank's 2% target in March, data showed.

Government bond yields had retreated from multi-year highs

at the start of the week after rising sharply this month because

of the conflict, with investors appearing to refocus on the risk

of weaker growth stemming from the energy shock.

The German 2-year yield fell 0.2 basis points to

2.62%.

The European Union's energy chief has told governments to

prepare for "prolonged disruption" to energy markets as a result

of the war, ahead of an emergency meeting on Tuesday.

"If the Strait of Hormuz remains closed for the next week or

two, then I think we'll be raising our probabilities of

recession in our scenario analysis," Robeco's Graham said,

adding that this was not yet the case.

The Japanese yen strengthened 0.35% against the

greenback to 159.14 per dollar.

Japan's finance minister said that the government was ready to

respond "on all fronts" against foreign exchange volatility,

underscoring Tokyo's alarm over the yen's recent slide.

In commodities, spot gold rose 2.25% to $4,612.60 an

ounce.