* Investors in wait-and-see mode ahead of Trump's

deadline

* Iran rejects ceasefire deal, seeks permanent end to war

* Trump threatens to attack civilian infrastructure if no

deal

* Oil prices above $110/barrel, dollar holds ground

(Updates to Asia afternoon)

By Ankur Banerjee

SINGAPORE, April 7 (Reuters) - Global stocks wavered on

Tuesday, while oil prices were perched above $110 per barrel as

the prospect of escalation in the war in the Middle East and the

looming deadline for a deal to be reached kept nervy investors

on the sidelines.

Markets have been rattled since the U.S.-Israel war on Iran

broke out at the end of February, with Tehran effectively

closing the Strait of Hormuz, a key global oil transit

chokepoint that has spurred inflation worries.

While investors have pinned their hopes on a resolution to

the war, the talks so far have yielded no progress, with U.S.

President Donald Trump imposing a deadline of Tuesday 8 p.m.

Eastern Time (0000 GMT Wednesday) for a deal to be reached.

That has triggered a risk-off and cautious mood with the

U.S. dollar holding onto its gains and oil prices surging.

Brent crude futures rose 1% to $111.53 a barrel

having risen over 50% since the war started.

A record-breaking quarterly profit forecast from chipmaker

Samsung Electronics ( SSNLF ) helped lift investor mood a bit

in Asian hours before the reality of the energy shock from the

six-week long war set in.

Japan's Nikkei was choppy as it erased early gains

to trade flat. South Korean stocks were up 0.2% having

surged over 2.5% earlier in the session.

U.S. stock futures fell 0.35%, while European

futures pointed to a slightly higher open after being

closed for holidays on Friday and Monday.

"We are back on a Trump imposed countdown clock and there's

no way to predict with any confidence what will happen," said

Kyle Rodda, senior markets analyst at Capital.com.

"The more intrepid traders might make a bet one way or the

other. Others will look to hedge risk or stay out entirely. But

there's not much market participants can really do but wait and

see."

Iran said it wanted a lasting end to the war, instead of a

temporary ceasefire and pushed back against pressure to reopen

the waterway, a conduit for about a fifth of the world's oil and

natural gas supply.

Trump warned Iran could be "taken out" if it did not meet

his deadline for a deal, vowing to destroy Iranian power plants

and bridges, brushing off concerns that such actions would be a

war crime.

"Any follow-through on threats to target Iran's power

infrastructure would mark a significant escalation, raising the

risk of retaliatory action that could further disrupt Gulf

energy facilities," said Vasu Menon, managing director of

investment strategy at OCBC in Singapore.

STAGFLATION RISKS

The conflict has spurred worries about stagflation - high

inflation with weak or slow growth - upending the global rates

outlook, with traders no longer pricing in any rate cuts from

the Federal Reserve this year.

Data on Monday showed U.S. services sector growth slowed in

March, while prices paid by businesses for inputs increased by

the most in more than 13 years, an early indication that the

prolonged war with Iran was boosting inflationary pressure.

U.S. inflation data is due on Friday that will likely

underscore the extent of the pricing pressure from rising energy

prices but for now investor attention will be on Trump's war

deadline and whether a deal is agreed.

In currencies, the euro was steady at $1.1538. The

dollar index, which measures the U.S. currency against

six other units, was at 100.03, near its recent highs. The

dollar has been the haven of choice among investors during the

tumult.

The Japanese yen last bought 159.74 per U.S. dollar,

hovering near the crucial 160 level that traders have been

watching out for to gauge whether Tokyo might intervene in the

wake of strong recent comments from officials.

Gold prices eased 0.17% to $4,640 per ounce in early

trading.