* Oil prices surge amid Strait of Hormuz shipment

disruptions

* U.S. Treasury yields increase, dollar strengthens

* Euro zone growth stalls due to inflation and war impact

(Updates to late morning New York time)

By Caroline Valetkevitch

NEW YORK/LONDON, March 24 (Reuters) - Major global stock

indexes were mixed on Tuesday as oil prices extended recent

sharp gains and worries persisted over how long the Israeli-U.S.

war on Iran will go on.

U.S. Treasury yields pushed higher and the dollar regained

lost ground.

Stocks had rallied on Monday after U.S. President Donald

Trump said he had ordered the military to postpone strikes

against Iranian power plants following "productive

conversations" with Tehran. Iran has denied talks with the

United States.

Oil prices rose on Tuesday. U.S. crude gained 3.63%

to $91.33 a barrel and Brent rose to $98.54.

With the war raging and shipments of about one-fifth of the

world's oil and liquefied natural gas through the Strait of

Hormuz curtailed, oil prices were expected to stay high.

"Today we're seeing a little bit more negative sentiment

seep back into markets," said Oliver Pursche, senior vice

president and advisor at Wealthspire Advisors. "Investors are

mostly focused on oil prices, but to me the bigger risk is

commodity-related inflation, in particular related to

agriculture ... That could have a much more profound,

longer-term impact than oil prices."

Also, he said, "there's still a lot of confusion and lack of

clarity about Iran and how long the military operations will

last and what the consequences for oil and global trade are.

That's the key driver."

Communication services and technology

were the day's biggest percentage decliners in the S&P 500.

The Dow Jones Industrial Average rose 145.83 points,

or 0.30%, to 46,348.22, the S&P 500 rose 5.77 points, or

0.09%, to 6,586.74 and the Nasdaq Composite fell 70.12

points, or 0.32%, to 21,877.14.

MSCI's gauge of stocks across the globe rose

4.46 points, or 0.45%, to 989.37.

The pan-European STOXX 600 index rose 0.54%.

Earlier, euro zone private sector growth nearly stalled this

month as inflation expectations surged and delivery times

soared, adding to mounting evidence the bloc is already

suffering a tangible drag from the U.S. and Israeli war on Iran,

data released on Tuesday showed.

The risk of persistent inflation arising from the escalating

war with Iran was strong enough to convince Fed Governor

Christopher Waller to switch his support to keeping interest

rates on hold from cutting them, he said last week, as market

expectations for the U.S. central bank's next move shifted

toward a hike in borrowing costs.

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

3.4 basis points to 4.37%, from 4.34%.