San Francisco Frontiers - Oil climbs, stocks fall even as Trump extends Iran deadline

The cautious response came as governments around the world looked to shore up their economies against surging energy costs, which are adding to inflationary pressures.

Trump has extended a deadline for Tehran to open the Strait of Hormuz or face the destruction of its energy assets, pushing it from Friday to April 6.

The announcement largely failed to lift the mood for markets, with European stocks falling and oil prices up around 2.5 percent.

Frankfurt and Paris stock markets each shed more than one percent, while London was down 0.7 percent around midday.

That contrasted with the sharp plunge in oil prices and gains for stocks after Trump first delayed the deadline earlier this week.

"While the delay might reduce some of the immediate escalation risk, it offers no new visibility on the path towards resolution," said Deutsche Bank analyst Jim Reid, noting that the crucial Strait of Hormuz remains largely closed.

The dollar, seen as a safe-haven investment amid the war, climbed against main rivals Friday.

Trump has insisted Iran wanted "to make a deal" to end the war engulfing the region, but the Iranian side has indicated no let up in reprisal attacks against Israel and targets across the Gulf.

That came as Kuwait said its main commercial port was damaged in a drone attack.

Iran's Tasnim news agency said the country has responded to Washington's 15-point plan to end the war and was awaiting a reply.

The report, citing an unnamed source, said officials had called for an end to US-Israeli attacks on Iran and Tehran-backed groups elsewhere in the region.

It called also for war reparations and for Iran's sovereignty over the Strait of Hormuz to be respected.

"Words alone aren't cutting it right now, with the pause on Iran energy strikes failing to lift the mood in any meaningful way," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.

"Tangible evidence of progress is what's needed," he added.

Investors were monitoring signs of further escalation after the Wall Street Journal cited Department of Defense officials as saying the Pentagon was considering sending up to 10,000 extra ground troops to the Middle East.

Adding to market woes, China on Friday opened an investigation into US trade practices in response to Washington's probes this month of Beijing.

Tokyo's stock market closed lower, while Hong Kong and Shanghai edged up.

With the Middle East crisis continuing to cause havoc, governments around the world have unveiled a range of support measures.

Vietnam temporarily waived an environmental levy on fuel to cut petrol prices by more than a quarter, India said it had lowered fuel taxes and Japan looks to temporarily lift restrictions on coal-fired power plants in a bid to ease an energy crunch.

Spain, Poland and South Korea earlier this week announced support plans that included fuel tax cuts.

- Key figures at around 1115 GMT -

Brent North Sea Crude: UP 2.5 percent at $104.40 a barrel

West Texas Intermediate: UP 2.7 percent at $97.01 a barrel

London - FTSE 100: DOWN 0.7 percent at 9,905.18 points

Paris - CAC 40: DOWN 1.0 percent at 7,761.88

Frankfurt - DAX: DOWN 1.5 percent at 22,275.15

Tokyo - Nikkei 225: DOWN 0.4 percent at 53,373.07 (close)

Hong Kong - Hang Seng Index: UP 0.4 percent at 24,951.88 (close)

Shanghai - Composite: UP 0.6 percent at 3,913.72 (close)

New York - Dow: DOWN 1.0 percent at 45,960.11 (close)

Euro/dollar: DOWN at $1.1511 from $1.1523 on Thursday

Pound/dollar: DOWN at $1.3302 from $1.3313

Dollar/yen: UP at 159.88 yen from 159.83 yen

Euro/pound: DOWN at 86.54 pence from 86.55 pence

X.White--SFF