* Wall Street stocks higher; Nasdaq up more than 1%

* US imposes new 50% tariffs on $20 billion worth of

Canadian products

* US Treasury yields gain amid war, oil jitters

(Updates to early afternoon)

By Caroline Valetkevitch and Ankur Banerjee

NEW YORK/SINGAPORE, July 21 (Reuters) - Major stock indexes

rose on Tuesday with the Nasdaq and chipmaker shares surging,

while oil prices climbed to a five-week high amid rising

tensions in the Iran conflict.

Benchmark 10-year U.S. Treasury yields reached a two-month high

as traders considered whether the renewed spike in oil prices

will feed through to consumer prices and raise the odds of

Federal Reserve interest rate hikes further.

Two oil tankers carrying Saudi crude to Asia reversed course in

the Red Sea after threats from Yemen's Iran-aligned Houthis.

U.S. crude rose 2.32% to $85.16 a barrel and Brent

rose to $91.08 per barrel, up 2.08% on the day.

"Investors are not necessarily thinking the war is going to end

anytime soon," said Bruce Zaro, managing director at Granite

Wealth Management in Plymouth, Massachusetts, but he said the

conflict's impact on oil prices may be seen as overdone.

Investors also waited for corporate earnings this week, with

results from Intel ( INTC ), Alphabet and others due.

Market watchers are interested in whether the AI trade has more

room to run, given sky-high profit expectations for the second

quarter.

Earnings are "really the key as to how the market performs in

the short window," Zaro said.

An index of semiconductors was up more than 5%. The index

ended Friday more than 20% below its late-June record closing

high.

The Dow Jones Industrial Average rose 395.97 points, or

0.76%, to 52,235.23, the S&P 500 rose 63.60 points, or

0.85%, to 7,506.88 and the Nasdaq Composite rose 342.90

points, or 1.34%, to 25,850.97.

European stocks rose, with technology and mining shares gaining.

The pan-European STOXX 600 index was up 0.56%.

MSCI's gauge of stocks across the globe rose

11.29 points, or 1.02%, to 1,116.79.

The yield on benchmark U.S. 10-year notes gained

3.62 basis points to 4.634% and reached 4.640%, the highest

since May 20. Traders are pricing in at least one rate hike from

the Fed this year, according to money markets.

Trade was also in the spotlight. The Canadian dollar

weakened 0.15% versus the greenback to C$1.409 per dollar, after

the U.S. imposed a new tariff of 50% on a wide range of Canadian

products in response to Ottawa's "discriminatory treatment" of

American-made cars, alcohol and dairy goods.

U.S. and Mexican trade negotiators will meet for a third round

of bilateral talks to try to push forward with revising the

North American trade agreement.

The dollar index, which measures the greenback against a

basket of currencies including the yen and the euro,

rose 0.17% to 101.12, with the euro down 0.05% at

$1.1408.