* Stocks continue to slide as Trump fails to calm markets

* US Treasury yields hit highest since July as bonds fall

* Analyst: 'Words alone aren't cutting it right now'

(Updates prices throughout, adds fresh analyst comments, U.S.

market open)

By Chibuike Oguh and Harry Robertson

NEW YORK/LONDON, March 27 (Reuters) - Global stock

markets fell and oil prices rose on Friday as fears over the

Middle East conflict persisted, despite U.S. President Donald

Trump's extension of a deadline for Iran to reopen the Strait of

Hormuz.

Iran gave no direct indication that it was ready for

negotiation, and its Islamic Revolutionary Guard Corps

reiterated it would continue to try to disrupt shipping in the

region.

On Wall Street, all three main indexes were trading lower

with consumer discretionary, financial and technology shares

driving losses. Energy, consumer staples and utilities gained.

The Dow Jones Industrial Average fell 0.90%, the S&P

500 lost 0.88% and the Nasdaq Composite shed

1.33%.

The pan-European STOXX 600 index dropped 1%.

Germany's DAX index fell 1.4% while London's FTSE 100

index shed 0.3%.

MSCI's index of Asian shares excluding Japan fell 0.8%

overnight. MSCI's gauge of stocks across the

globe fell 0.93%.

"Words alone aren't cutting it right now, with President

Trump's extension of the pause on Iran energy strikes failing to

lift the mood in any meaningful way," Matt Britzman, senior

equity analyst, Hargreaves Lansdown, said. "Tangible evidence of

progress is what's needed."

NASDAQ VEERS INTO CORRECTION TERRITORY

The tech-focused Nasdaq Composite veered into

correction territory after dropping 2.4% on Thursday, leaving

the index down nearly 11% from its record-high close in late

October.

"The unbridled optimism that propelled Nasdaq to all-time

highs in the fourth quarter is fading as the macro backdrop

sours and uncertainty about the impact of AI across the tech

ecosystem clouds the horizon," James St. Aubin, chief investment

officer at Ocean Park Asset Management, said.

Brent crude futures rose 2.36% to $110.55 a barrel. U.S.

West Texas Intermediate futures were up 3.56% at $97.84.

"Buy the dip; chaos creates opportunities for patient

long-term investors," Talley Leger, chief market strategist at

The Wealth Consulting Group, said.

BOND YIELDS RISE

Government bond yields rose as investors grappled with a

potential inflationary shock that could force central banks to

raise interest rates. Yields rise as prices fall and vice versa.

The 10-year U.S. Treasury yield, which sets the

tone for borrowing costs around the world, rose more than 2

basis points to 4.4398%.

Money markets now see a roughly 60% chance the U.S. Federal

Reserve raises rates this year, a sharp change from late

February when traders were betting on two cuts in 2026.

Germany's 10-year bond yield rose to its highest

level since 2011 at 3.13%.

In currencies, the U.S. dollar was slightly higher against

the major peers including the Japanese yen and Swiss franc.

The dollar was up 0.06% to 159.865 against the yen

and up 0.26% to 0.79645 versus the Swiss franc. The euro

was up 0.03% at $1.153075.

The U.S. dollar index, which tracks the currency against

six peers, rose 0.07% for a fourth straight session of gains.

Spot gold was up 3% to $4,510.09 an ounce.