* MSCI LatAm FX gauge hits highest level in a month

* Brazil and Chile central banks decisions due this week

* Chilean peso on track for longest gaining streak since Jan

* Colombian, Argentinian markets closed for holiday

(Updates with late afternoon trading)

By Ragini Mathur, Avinash P and Purvi Agarwal

June 15 (Reuters) - Latin American currencies and stocks

were mixed on Monday, with some assets stabilizing in afternoon

trading as markets digested a U.S.-Iran framework peace deal

that lifted global risk appetite and sent oil prices lower.

U.S. President Donald Trump said a preliminary agreement to

end the war in the Gulf has already been signed by the United

States and Iran, though details have yet to be made public.

The news comes a day after officials said the deal would end

the war, lift the U.S. blockade of Iran and reopen the Strait of

Hormuz, a key route for global oil shipments.

Brent crude futures slumped more than 4% to about

$83 a barrel. Investors cheered the truce as gradual restoration

of shipping through the Strait could reduce energy-driven

inflation risks and weaken the case for interest rate hikes.

"The agreement is closer to a memorandum of understanding

(MOU) than a final deal ... However, all markets really care

about at this stage is the Strait opening," Ashmore analysts

said.

"'Deal or no deal' oscillations have been incessant over

recent weeks and months, but oil prices dropping this quickly is

clearly an important signal."

MSCI's Latin American stocks index was flat

in afternoon trading, while the currencies gauge

was up 0.1%, after hitting a one-month high.

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Investors are watching the U.S. Federal Reserve's decision

this week as it could set the tone for the dollar and

consequently Latin American currencies through the week.

Decisions in Brazil and Chile will also be watched.

Brazil's real reversed gains to weaken 0.2% against

the dollar. Its main stock index fell 0.4%, dragged down

by a 5% decline in state oil giant Petrobras.

Latin America's biggest economy will vote in October, with

current President Luiz Inácio Lula da Silva leading opinion

polls, after right-wing challenger Flavio Bolsonaro's chances

were hurt by a report linking him to a disgraced banker.

Brazilian assets are susceptible to headlines that raise

doubts over a market-friendly government coming to power, as the

country has been reeling under deteriorating public finances and

high interest rates under the Lula administration.

"The real is still likely to weaken, though high interest

rates should support it, provided fiscal risks are reined in,"

said Enestor Dos Santos, global economist at BBVA Research.

"Risks mainly stem from this year's general elections,

relations with the U.S., and fiscal accounts."

Brazil Finance Minister Dario Durigan said the country would

use its strongest arguments against a proposed 25% U.S. tariff

on many Brazilian imports.

In Chile, stocks pared gains to trade 0.2% higher,

after hitting a more than one-month high. Chile's peso

outperformed peers with a 0.8% advance and was set for its fifth

session of gains - its longest since late January. An uptick in

copper prices partly aided the rise.

Meanwhile, Colombia is headed for a June 21 runoff between

leftist Ivan Cepeda and right-winger Abelardo De La Espriella.

The government on Friday maintained its 2026 growth forecast at

2.6% and projected a 2.2% expansion in 2027.

Markets in Argentina and Colombia were closed for public

holidays.

Key Latin American stock indexes and currencies:

Latin American market

prices from Reuters

Equities Latest Daily %

change

MSCI Emerging Markets 1762.75 2.73

MSCI LatAm 3010.14 0.05

Brazil Bovespa 170525.24 -0.35

Mexico IPC 68220.01 0.39

Chile IPSA 10946.3 0.23

Argentina Merval - -

Colombia COLCAP - -

Currencies Latest Daily %

change

Brazil real 5.0661 -0.15

Mexico peso 17.2165 -0.06

Chile peso 891.15 0.84

Colombia peso - -

Peru sol 3.3996 0.02

Argentina peso (interbank) - -

Argentina peso (parallel) - -

(Reporting by Ragini Mathur, Avinash P and Purvi Agarwal in

Bengaluru; Editing by Andrea Ricci and Anil D'Silva)