(Updates to U.S. markets close)

* S&P 500, Nasdaq notch record closing highs

* Iran seizes ships in Strait of Hormuz

* CEOs voice concerns over prolonged, elevated energy

prices

* WTI settles up 3.7%; Brent settles up 3.5%

* Gold rises off one-week low

By Stephen Culp

NEW YORK, April 22 (Reuters) - Wall Street stocks gained

ground on Wednesday following U.S. President Donald Trump's

unilaterally declared ceasefire extension in the Iran war, and

oil resumed its upward climb after Iran challenged the fragile

truce by seizing two cargo ships in the Strait of Hormuz.

All three major U.S. stock indexes advanced, with tech

shares helping to put the Nasdaq out front, while gold advanced

and the dollar edged higher. The S&P 500 and the Nasdaq reached

record closing highs.

"Despite the energy shock and headlines that have inundated

investors, the macroeconomy, corporate fundamentals and consumer

spending remain strong," said Bill Merz, head of capital markets

research at U.S. Bank Wealth Management in Minneapolis.

"Investors are taking the stance that the Strait of Hormuz will

open before too much damage is inflicted on the global economy."

Iran's Revolutionary Guards seized two vessels for maritime

violations just hours after Trump agreed to extend the ceasefire

until negotiations are concluded. About a fifth of the world's

oil and liquefied natural gas (LNG) supplies normally pass

through the strait.

U.S. stocks, initially battered by the war, have since made a

full recovery, with the S&P 500 and the Nasdaq having reached

all-time closing highs in recent sessions. But geopolitical

uncertainty lingers and a prolonged period of elevated oil

prices remains a threat.

About two-thirds of the S&P 500 companies that have reported

quarterly earnings since the beginning of April have voiced

concerns about energy prices in their analyst conference calls,

according to a Reuters review of transcripts.

"Anytime there's a global event like the conflict in the

Middle East, and it grabs so many headlines and captures

attention, it will crop up in earnings commentary," Merz added.

"But we're not seeing it significantly impact behavior yet."

First-quarter earnings season is well underway amid lofty

expectations. Analysts currently estimate year-on-year S&P 500

earnings growth of 14.4% for the January-March period, according

to the most recent LSEG data.

The Dow Jones Industrial Average rose 341.27 points,

or 0.69%, to 49,490.52, the S&P 500 gained 73.90 points,

or 1.05%, to 7,137.91 and the Nasdaq Composite was up

397.60 points, or 1.64%, to 24,657.57.

European shares ended lower for the third straight session

as the Middle East strife continued to weigh on markets and

investors assessed a raft of corporate earnings.

Dozens of international firms have withdrawn guidance or

signaled price hikes since the war began.

MSCI's gauge of stocks across the globe rose

4.52 points, or 0.42%, to 1,070.98.

The pan-European STOXX 600 index fell 0.35%, while

Europe's broad FTSEurofirst 300 index fell 8.58 points,

or 0.35%.

Emerging market stocks fell 9.41 points, or 0.58%,

to 1,606.07. MSCI's broadest index of Asia-Pacific shares

outside Japan closed lower by 0.6%, to 822.27,

while Japan's Nikkei rose 236.69 points, or 0.40%, to

59,585.86.

The dollar rose amid lingering geopolitical worries.

The dollar index, which measures the greenback

against a basket of currencies including the yen and the euro,

rose 0.26% to 98.63, with the euro down 0.32% at $1.1704.

Against the Japanese yen, the dollar strengthened

0.12% to 159.56.

In cryptocurrencies, bitcoin gained 4.13% to

$78,866.74. Ethereum rose 3.48% to $2,398.37.

U.S. Treasury yields increased, rangebound amid choppy trading.

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

1.2 basis points to 4.304%, from 4.292% late on Tuesday.

The 30-year bond yield rose 1.1 basis points to

4.9091% from 4.898% late on Tuesday.

The 2-year note yield, which typically moves in

step with interest rate expectations for the Federal Reserve,

rose 2.1 basis points to 3.8%, from 3.779% late on Tuesday.

Oil prices jumped following the reports of attacks on

container ships in the Strait of Hormuz, and got a further boost

from a surprise drawdown in gasoline and distillate stocks in

the U.S.

U.S. crude rose 3.67% to settle at $92.96 per barrel,

while Brent settled at $101.91 per barrel, up 3.48% on

the day.

Bargain hunters pushed gold prices higher after the precious

metal hit a one-week low.

Spot gold rose 0.55% to $4,737.69 an ounce. U.S. gold

futures rose 0.93% to $4,742.20 an ounce.