* TSX falls to three-month low, down 2.1%

* Miners lead broader declines, energy only sector higher

* Silver miners plunge as metal slides 8%

(Updates after markets open)

By Purvi Agarwal

March 19 (Reuters) - Canada's main stock index fell to a three-month low on Thursday as

an escalation in the Middle East conflict following attacks on energy infrastructure in the

region dented risk appetite, withsharp declines inmining shares adding further pressure.

At 10:28 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was down

2.1% at 31,650.70.

The materials sector, which includes mining stocks, led the declines, down more

than 7% and heading for its biggest one-day fall since January 30. Silver miners such as

Discovery Silver ( DSVSF ) and Endeavor Silver tumbled more than 11% each, tracking an

8% decline in prices of the white metal.

Gold fell 5%, while copper slid to three-month lows.

Oil prices climbed again on Thursday with benchmark Brent crude futures jumping

above $119 a barrel, after Iran attacked energy facilities across the Middle East following

Israel's strike on its South Pars gas field.

The spike sapped broader risk appetite, with most sectors on the TSX trading lower, but sent

the energy sector up 1.8%. Energy stocks are on track for a seventh straight session

of gains - their longest streak since June.

"Energy prices are risking becoming entrenched, even if some form of de-escalation can take

place... today's moves suggest markets may be waking up to the fact that a prolonged energy

crisis is now the more likely scenario," said Stuart Clark, portfolio manager at Quilter.

"This heightened level of volatility will likely be maintained given the uncertainty to the

duration of the war or the endgame."

Global central banks struck a hawkish tone, signaling they were ready to tackle any surge in

inflation with tighter policy as energy prices remain elevated on supply disruptions, with the

war dragging on.

The Federal Reserve projected a single reduction this year, driving money market

participants to scale back rate-cut bets. Traders are not fully pricing in any easing from the

Fed this year, compared with expectations of two cuts before the war, LSEG-compiled data showed.

The Bank of Canada said on Wednesday it was open to interest rate hikes if needed. Canada is

relatively insulated from crude price shocks, being a net oil exporter.