(Updated at 10:16 a.m. ET/ 1416 GMT)

By Nikhil Sharma

Oct 2 (Reuters) - Canada's main stock index touched a

record high on Wednesday, aided by a rise in energy and mining

stocks as escalation of the conflict in the Middle East stoked

fears of oil supply disruption.

The Toronto Stock Exchange's S&P/TSX composite index

hit a record high of 24,113.27 points in early

trading. At 1016 ET, the TSX was up 63.52 points, or 0.26%, at

24,097.51.

Tensions in the Middle East on Tuesday escalated when Iran

carried a ballistic missile strike on Israel, which has promised

a retaliation.

The conflict has made investors averse to risk due to lack

of clarity on how the scenario might evolve, with the escalation

of crisis putting pressure on markets globally.

On Wall Street, the benchmark S&P 500 and the Nasdaq

traded near two-week lows on Wednesday.

However, fears of a supply disruption has boosted oil

prices, and that has supported Toronto's commodity heavy index

so far.

"It seems like much of the premium is priced in now," said

Kevin Headland, co-chief investment strategist at Manulife

Investment Management.

"Of course, if things escalate further, there's always

risk."

The heavyweight energy sector led sectoral gains

with a 1% rise, tracking oil prices that jumped over 3%.

The materials sector, which includes precious and

base metal miners and fertilizer companies, also rose 0.9%.

On the other hand, the healthcare and capped

communications were the worst hit, falling 0.6% and

0.7%, respectively.

Meanwhile, the U.S. private payrolls increased more than

expected in September, providing further evidence that labor

market conditions were not deteriorating.