* Trump unhappy with latest Iranian proposal, official

says

* Big tech earnings to test strong AI rally in April

* BOJ holds rates; Fed, ECB and BoE also to stand pat

this week

(Updates to European session, adds analyst comment)

By Ankur Banerjee and Harry Robertson

SINGAPORE/LONDON, April 28 (Reuters) - Stocks held their

ground and oil rose on Tuesday as investors weighed the

stalemate in the Iran conflict, while the yen was steady after a

hawkish split at the Bank of Japan underlined fears over the

war's impact on inflation.

The U.S. was reviewing Tehran's latest proposal to resolve

the war, even as a U.S. official said President Donald Trump was

unhappy with the plan as it did not address Iran's nuclear

programme.

That leaves the two-month-long conflict at an impasse with

energy and other supplies through the critical Strait of Hormuz

still mainly shut, pushing oil prices above $110 a barrel on

Tuesday.

Brent crude oil surged 2.7% to $111.20 a barrel, a

three-week high, while U.S. oil climbed 2.9% to $99.10.

Oil prices have steadily climbed in recent days as hopes ebb

for an imminent peace deal, pushing up bond yields around the

world in recent weeks .

Futures for the U.S. benchmark S&P 500 stock index

slipped 0.1% and those for tech-focused Nasdaq fell

0.4%.

European stocks dipped in early trading but the STOXX 600

index was last flat.

CORPORATE RESULTS ROLL IN

"Earnings season has helped markets look through the

disruption, but the longer key oil flows remain constrained, the

greater the risk that higher energy costs begin to bite," said

Matt Britzman, senior equity analyst at Hargreaves Lansdown.

The U.S. S&P 500 hit another record on Monday after

rising for four weeks on optimism over a possible peace deal and

ongoing excitement around AI.

Investors are focusing this week on earnings from tech

giants Microsoft ( MSFT ), Alphabet, Amazon ( AMZN ),

Meta Platforms ( META ) and Apple ( AAPL ) which will test the

blistering AI-driven rally.

Elsewhere, the dollar index climbed 0.2% as the pound

and euro both slipped by the same amount .

The dollar has been one of the few safe-haven assets during

the Iran conflict, although it has given up much of its March

gains in the last few weeks.

"The twists and turns of U.S.-Iran peace negotiations

continue to buffet markets," and doubts over the progress of

peace talks was pushing the dollar higher, said Nick Rees, head

of macro research at Monex Europe.

BANK OF JAPAN SPLIT ON RATES

The BOJ left short-term rates unchanged on Tuesday at 0.75%,

in the first of several central bank meetings this week that

could shed light on the impact of the conflict.

"The 6-3 vote split and the stronger language on future

policy adjustment suggest the bar for another hike may be

falling," said Charu Chanana, chief investment strategist at

Saxo.

The yen initially strengthened but was last

slightly lower at 159.53 per dollar, putting it near 160. A

breach beyond that threshold has markets worried Tokyo might

step in to support the currency.

Japan's Nikkei stock index fell 1% from a record

high hit on Monday.

Global monetary policy will be in the spotlight this week,

with the U.S. Federal Reserve, the Bank of England and the

European Central Bank due to announce decisions after the BOJ.

All are expected to keep rates unchanged but attention will

be on comments from policymakers on pricing pressure.