By Wayne Cole

SYDNEY, May 11 (Reuters) - Share futures slipped and the dollar climbed in Asia on Monday on signs that talks between the United States and Iran were deadlocked, leaving the vital Strait of Hormuz all but shut and sending oil prices higher.

President Donald Trump on Sunday rejected Iran's response to a U.S. proposal for peace talks to end the war, saying Tehran's demands were "totally unacceptable."

An Iranian plan sent to the U.S. stressed the need for an end to the war on all fronts and the lifting of sanctions on Tehran, along with reparations and a recognition of Iran's control of the Strait, Iranian media reported.

"The conflict in the Middle East is now entering its 11th week," noted Bruce Kasman, global head of economics at JPMorgan. "Energy prices have surged but remain at levels that are headwinds rather than expansion-ending obstacles."

"The risk of a sharper move rises with each week the Strait of Hormuz stays closed, and our commodities team sees operational stress levels starting sometime in June."

Brent oil futures LCOc1 quickly rose 2.8% in early trade to $104.06 a barrel, while U.S. crude CLc1 gained 2.7% to $97.97 a barrel. O/R

The dollar benefited as a store of liquidity during risk events, edging up 0.2% on the Japanese yen to 156.88 yen JPY=EBS, while the euro dipped 0.2% to $1.1760 EUR=EBS.

Japan is wagering that a hawkish shift at the Bank of Japan and an endorsement from U.S. Treasury Secretary Scott Bessent can give yen-buying intervention extra bite and help to slow the embattled currency's slide.

Both Europe and Japan are major importers of oil, while the U.S. is a net exporter.

S&P 500 futures ESc1 slipped 0.3%, while Nasdaq futures NQc1 eased 0.2%. Shares had hit record highs last week on the back of upbeat corporate earnings and a solid payrolls report.

Results out this week include tech networking equipment firm Cisco CSCO.O and semiconductor equipment maker Applied Materials AMAT.O. Heavyweights Nvidia NVDA.O and Walmart WMT.O are due later in the month.

Japan's share market was still catching up to Friday's jump on Wall Street, with futures NKc1 trading at 63,475 against a cash close of 62,713.

The Gulf will be on the agenda when Trump visits China from Wednesday, meeting Chinese President Xi Jinping in their first face-to-face talks in more than six months.

Trade, Taiwan, artificial intelligence and nuclear weapons are all set to be discussed as they weigh extending a critical minerals deal.

In commodity markets, gold slipped 0.5% to $4,690 an ounce XAU=, having drawn scant support as a safe haven or as a hedge against inflation risks. GOL/