* Turkish assets steady after last week's volatility

* Stocks and bonds edge up, lira near record lows, CDS

stable

* Political crisis around CHP leadership keeps markets

fragile

(Updates prices, adds new comment, information about Iran war)

By Canan Sevgili

GDANSK, May 25 (Reuters) - Turkish assets steadied on

Monday, with stocks and the lira broadly stable and

international bonds edging higher after last week's sharp swings

triggered by a court ruling targeting the main opposition

leadership.

Tensions escalated over the weekend when riot police used

tear gas to enter CHP headquarters in Ankara to enforce an

eviction order against officials inside.

The benchmark BIST 100 index opened 0.6% higher but

pared gains to trade up 0.21% at 1300 GMT. The index hit

six-week lows on Friday, before rebounding. The banking index

gained 1.26% on Monday, signalling a cautious recovery

in a market still sensitive to political risk.

The lira traded at 45.7205 against the dollar,

near record lows and little changed from Friday's close.

In debt markets, the 2041 bond was up 0.2

cents to 84.7 cents on the dollar, Tradeweb data showed.

Five-year credit default swaps - which insure exposure to

sovereign bonds against default - stood at 252.8 basis points,

unchanged from Friday, S&P Global Market Intelligence data

showed.

A Turkish court last week annulled the main opposition CHP's

2023 congress that elected leader Ozgur Ozel, citing procedural

irregularities. The ruling effectively removed Ozel, deepening a

political crisis that has unsettled investors.

Ozel's allies have condemned the decision as a "judicial

coup". He has vowed to challenge it in court and remain at party

headquarters, while calling for a new congress as soon as

possible. Former leader Kemal Kilicdaroglu said a congress would

be held at an "appropriate" time.

POLITICAL RISK

Analysts said the ruling could test Turkey's democratic

institutions and potentially extend President Tayyip Erdogan's

23-year rule.

"As usual, and having watched similar roller coasters in the

past, I believe that the dust will settle in the short run,

after a period of volatility and questions regarding the

political stability - lira, CDS - are to be closely watched,"

said Swissquote senior analyst Ipek Ozkardeskaya.

"Unless the latter (weekend) events lead to broader unrest

and cracks in the broader system ... the long-term impact will

likely remain limited."

After the court decision, the BIST 100 fell as much as 6%,

triggering a market circuit breaker, while international bonds

hit multi-week lows. On May 21, the central bank intervened to

support the lira after it slid to record lows.

Despite Monday's stabilisation, markets remain highly

sensitive to developments around the CHP and broader political

risks, analysts said.

Piotr Matys, senior FX analyst at InTouch Capital Markets,

said Turkish stocks are also failing to fully benefit from

broader market optimism that the Iran war could end soon.

Trading volumes were thin, with UK and U.S. markets shut for

public holidays.