(Updates to afternoon trading)

* Indexes off: Dow 2.14%, S&P 500 1.21%, Nasdaq 1.06%

* Middle East conflict raises inflation concerns

* Broadcom jumps on strong AI chip revenue forecast

* Energy stocks edge up as Middle East war rages on

By Sabrina Valle and Johann M Cherian

March 5 (Reuters) -

S. stocks extended losses on Thursday afternoon as the

Middle East conflict entered its sixth day, pushing oil prices

higher and spurring worries about inflation and whether the

Federal Reserve will cut interest rates.

Expansion of the conflict to more countries fed fears of

disruption in the Strait of Hormuz, a critical energy choke

point, where missile and drone threats have drastically reduced

tanker traffic. This lifted U.S. crude prices about 8% to

roughly $80 per barrel. Global benchmark Brent crude rose about

4% to $85. Traders worry a prolonged interruption could feed

inflation and slow economic growth.

"Look at oil today, it tells you everything you need to

know about why the stock market's down," said Michael Antonelli,

market strategist at Baird Private Wealth Management.

At 2:15 p.m. the Dow Jones Industrial Average fell

1,045.27 points, or 2.14%, to 47,694.16, the S&P 500 lost

83.30 points, or 1.21%, to 6,786.42 and the Nasdaq Composite

lost 243.81 points, or 1.06%, to 22,566.06.

Limiting index losses were energy stocks, up 0.6%. A

strong forecast from chip designer Broadcom that

projected its artificial intelligence chip revenue would exceed

$100 billion next year sent its shares up 3.2%.

With the U.S.-Israeli air war against Iran raging, Wall

Street's main indexes have fared better than their European and

Asian counterparts this week, aided primarily by a rebound in

technology stocks that bore the brunt of February's selloff.

"The base case for the U.S. itself is that this war should

be relatively short-lived which explains why, in absolute terms,

equities have not fallen by very much, despite the quite sharp

increases we've seen in spot commodity prices," said Kiran

Ganesh, multi-asset strategist at UBS Global Wealth Management.

Any signs that crude prices could hit $100 a barrel would be

worrisome for markets and investors were on the lookout for

reports that the conflict could be nearing its end.

The passenger airlines sub-sector tumbled 6%. Royal

Caribbean Cruises ( RCL ) fell 1.8% and Viking Holdings ( VIK )

lost 4.2%.

Investors expect price pressures to delay a 25-basis-point

interest rate cut by the Federal Reserve to October from July,

according to LSEG-compiled data.

Losses were broad, with healthcare, materials

, consumer staples and industrials

falling over 2.5% each.

The CBOE volatility index was up 3.7 points at 24.91,

reflecting broader investor caution, while the rate-sensitive

Russell 2000 index was down 2.52%.

Declines in financials such as JPMorgan Chase ( JPM ) and

Goldman Sachs ( GS ) also weighed on the blue-chip Dow.

Meanwhile, data showed the number of Americans filing new

applications for unemployment benefits was unchanged last week.

The S&P 500 posted five new 52-week highs and two new

lows, while the Nasdaq Composite recorded 27 new

highs and 57 new lows.