* Brent extends gains as Trump threatens 20% fee on cargo

shipping

* Stocks volatile, Taiwan shares fall to one-month low

* Hawkish comments from Fed's Waller lift odds of July rate

hike

(Updates prices throughout, recasts for Wall Street open)

By Nell Mackenzie and Gregor Stuart Hunter

LONDON/SINGAPORE, July 14 (Reuters) - U.S. stock futures

were mixed in choppy trading on Tuesday after President Donald

Trump said the U.S. was reinstating its blockade of Iranian

shipping and as investors picked through the earnings reports of

Wall Street's biggest banks.

The U.S. military carried out strikes overnight against Iran

and President Donald Trump reinstated a blockade of Iranian

shipping and proposed charging a 20% fee to guard the Strait of

Hormuz.

S&P 500 futures ticked 0.1% lower in early European

trading while Nasdaq futures remained a resilient 0.5% higher.

Brent crude futures were last up around $2.80 at

$86.19 a barrel, their highest level since mid-June. U.S. crude

futures were up $1.60 to $79.78.

European shares opened lower as escalating U.S.-Iran

tensions spooked investors, scrutinizing quarterly earnings from

companies such as oil major BP and telecom equipment maker

Ericsson to gauge the conflict's impact on corporate health.

The pan-European STOXX 600 index slipped 0.4%,

dragged down by travel and leisure which was last down

2%.

Following a volatile trading session in Asia, MSCI's

broadest index of world shares edged into the

negative as European market trading got under way.

Markets were also rattled by hawkish comments on Monday from

Federal Reserve Governor Christopher Waller, who said the U.S.

central bank may need to raise interest rates "in the near term"

if data shows inflation continuing well above the 2% target.

"Markets enter Tuesday at an important inflection point as

investors balance three competing forces: renewed geopolitical

tensions in the Middle East, the start of the second-quarter

earnings season, and June U.S. inflation data," said Bruno

Schneller, managing partner at Zurich-based Erlen ⁠Capital

Management.

"These events are likely to determine whether the recent

rally broadens further or becomes more selective," he added.

U.S. CPI data is due for release on Tuesday, followed by

comments from Fed Chair Kevin Warsh, who will deliver the

central bank's semi-annual monetary policy report to Congress.

That data will help shape expectations for the Fed's next

meeting on July 28 to 29. Markets currently see around a 40%

chance of a 25 basis point rate hike.

The rate-sensitive U.S. 2-year Treasury yield was last at

4.26%, its highest since February 2025, and up 2 basis points

on the day.

The yield on the U.S. 10-year Treasury was up 2 basis points

at 4.61%.

BOOMING TRADE

Chinese shares surged in earlier trading after export and import

data for June released on Tuesday surpassed economists'

expectations. They closed 2.15% higher.

South Korean shares rose 0.7%. Stocks in Taiwan fell

1.42% on the day.

"China's exports and imports surged to the highest levels

since the pandemic-skewed 2021, as the tech boom supports growth

on both fronts," ING analysts wrote in a research note.

Overnight, stocks on Wall Street sold off. The S&P 500

closed 0.8% lower and the Nasdaq Composite fell

1.6%.

The U.S. dollar index, which measures the greenback's

strength against a basket of six currencies, nudged 0.2% lower

to 101.09, trading around its highest levels of the month. Gold

was up 0.7% at $4,029.27.

In Tokyo, the Nikkei 225 closed around 0.7% higher

after Finance Minister Satsuki Katayama said Japan may consider

adjusting the strategy of the giant Government Pension

Investment Fund if the investment environment changed sharply,

without giving further detail.

Bitcoin climbed 0.8% to $62,782.48.