Portugal Colonial - Oil prices jump as Iran strikes US targets

Crude futures earlier dropped after President Donald Trump suggested that the United States' own attacks against Iran would likely be short-lived.

The yen rallied against the dollar on fresh talk of intervention by Japan to boost its currency. The dollar was down also against the euro and British pound.

Asian and European stock markets, which posted largely modest gains or losses, were helped by Wednesday's rebound on Wall Street.

Away from Mideast war developments, traders were awaiting Friday's release of the closely watched US non-farm payrolls figures and the country's inflation update due next week.

There are concerns for borrowers that central banks could enter a fresh round of interest-rate hikes as elevated oil prices push up wider inflation.

This after yields on government bonds struck multi-decade highs this week, adding to fears over global debt repayments.

"The jump in borrowing costs can be blamed on many factors," noted David Morrison, senior market analyst at financial services provider Trade Nation.

"These include investor concerns over high, and seemingly ever growing, levels of government debt."

Morrison pointed also to "inflation fears linked to higher energy prices thanks to the US war with Iran".

The Islamic republic attacked US military bases in Kuwait on Thursday, despite Trump threatening further strikes in a fresh flare-up six months into the war.

The new clashes, which began with US raids on Sunday, deepen the ongoing impasse in the war, as Iran maintains a stranglehold on the strategic Strait of Hormuz and the US presses its counter-blockade of Iranian ports.

With the strait -- through which about a fifth of world oil and liquefied natural gas normally pass -- effectively closed and energy costs unlikely to come down markedly anytime soon, fears are growing that high inflation will settle in.

Investors expect that the US Federal Reserve will raise interest rates later this month to fight rising costs, risking further upward pressure on bond yields.

The Fed on Wednesday flagged that while the country's general economic outlook was positive, heightened uncertainty due to high energy prices and the Iran war was weighing on sentiment.

- Key figures at around 1100 GMT -

Brent North Sea Crude: UP 1.5 percent at $97.09 per barrel

West Texas Intermediate: UP 1.8 percent at $92.60 per barrel

London - FTSE 100: UP 0.3 percent at 10,783.52 points

Paris - CAC 40: DOWN 0.3 percent at 8,256.57

Frankfurt - DAX: DOWN 0.1 percent at 25,816.82

Tokyo - Nikkei 225: DOWN 0.2 percent at 64,214.48 (close)

Hong Kong - Hang Seng Index: DOWN 0.4 percent at 25,213.31 (close)

Shanghai - Composite: FLAT at 3,942.09 (close)

New York - Dow: UP 0.6 percent at 53,061.95 (close)

Dollar/yen: DOWN at 156.34 yen from 158.89 yen on Wednesday

Euro/dollar: UP at $1.1603 from $1.1584

Pound/dollar: UP at $1.3492 from $1.3484

Euro/pound: UP at 86.01 pence from 85.91 pence

burs-bcp/ajb/rl

M.Gameiro--PC