* Trump's deadline for Iran deal looms

* Chile posts trade surplus in March

* USMCA trade deal likely to go past deadline - USTR

* LatAm stocks down 1%, currencies flat

(Updates with afternoon trading)

By Niket Nishant and Twesha Dikshit

April 7 (Reuters) - Latin American equities slid on

Tuesday with investors growing wary ahead of a U.S. deadline for

Iran to open the Strait of Hormuz, while some physical oil

prices surpassed $150 a barrel.

U.S. President Donald Trump threatened that "a whole

civilization will die tonight," while Iran showed no signs of

accepting his ultimatum to end its blockade of gulf oil before

the 8 p.m. ET deadline.

The U.S.-Israeli war has upended global markets and sent oil

prices soaring, reviving concerns over inflation and global

growth.

MSCI's gauge of Latam equities fell 1%,

while a corresponding index of currencies was

flat

Chile's equities fell 1.4%, with dependence on oil

imports, combined with broader dollar strength, weighing on the

country's assets. The country posted a wider-than-expected trade

surplus in March.

"If the threatened escalation does happen and oil prices

climb further, we can expect renewed strength for the USD too.

The currencies that would be most vulnerable are the currencies

of net energy importers," said Macquarie strategists.

"A related 'risk' that may manifest if Brent Crude rises

toward USD 150/bbl are speculative attacks on the currencies of

EM countries that are highly dependent on oil imports."

The Brazilian real dropped 0.5%, leading declines in

the region, with South America's largest economy posting a trade

surplus in March that fell short of expectations.

Separately, the government was preparing a new credit

renegotiation program backed by federal guarantees to curb

rising household debt, sources told Reuters.

EQUITIES TUMBLE, INVESTORS WARY OF TRUMP THREATS

Stocks were weaker across the board, with Mexico's benchmark

index down 1.1%. U.S. Trade Representative Jamieson Greer

said the U.S.-Mexico-Canada trade agreement (USMCA) negotiations

would likely continue past the July 1 deadline.

Bourses in Colombia and Argentina slipped

0.9% and 1.5%, respectively. The Colombian peso, the

best-performing currency in the region since March, was little

changed. Last week, the central bank raised interest rates

despite pushback from the government.

A high-rate environment is often positive for a currency

because it can encourage capital inflows into domestic bonds and

other assets. However, the spat with the government could be a

challenge.

"Markets read this as a credibility shock, prompting a

repricing of institutional strength," said Pantheon

Macroeconomics' chief LatAm economist Andres Abadia.

Sentiment toward regional assets remains highly sensitive to

headlines from the Middle East.

Elsewhere in the emerging market universe, the Indonesian

rupiah breached the 17,100 level against the dollar for

the first time, defying the central bank's efforts to prop it

up, as energy shocks and lingering fiscal and governance

concerns chased foreign investors away.

Key Latin American stock indexes and currencies at 19:39

GMT:

Equities

Latest Daily %

change

MSCI Emerging Markets 0.73

1460.64

MSCI LatAm 3108.67

-0.96

Brazil Bovespa 187087.97 -0.57

Mexico IPC 68263.86

-1.05

Chile IPSA 10549.13 -1.36

Argentina Merval 2962135.89 -1.47

Colombia COLCAP -0.94

2279.05

Currencies

Latest Daily %

change

Brazil real 5.1628 -0.45

Mexico peso 17.729 0.12

Chile peso 917.5 -0.01

Colombia peso 3674.67 0.06

Peru sol 3.4255 -0.14

Argentina peso (interbank) 1392.5 0.11

Argentina peso (parallel) 1385.0 1.07