Updates at market close

By Fergal Smith

TORONTO, May 12 (Reuters)) - Canada's main stock index clawed back its earlier declines to end higher on Tuesday as a jump in oil prices driven by an impasse in U.S.-Iran peace talks lifted energy shares.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 151.85 points, or 0.4%, at 34,290.73, marking its highest closing level since April 20.

"You're seeing more of a buy the dip mentality," said Michael Dehal, a senior portfolio manager at Dehal Investment Partners at Raymond James. "People are bracing for some kind of energy-driven inflation shock that we could get and that's why we're seeing more buying pressure on commodity stocks."

U.S. consumer inflation increased further in April, with the annual rate posting its largest gain in three years.

The energy sector .SPTTEN added 2.4% as the price of oil CLc1 settled 4.2% higher at $102.18 a barrel. Stark differences between the U.S. and Iran over a proposal to end the war in the Middle East raised concerns of prolonged supply disruptions.

Consumer staples gained 1.1% and the materials group, which includes metal mining shares, ended 0.8% higher. Copper prices CMCU3 rose 1.9% to move above Monday's record closing high as funds bet on further gains due to supply issues and bullish technical signals.

Among the sectors that lost ground was technology .SPTTTK. It fell 1.7%, with shares of e-commerce company Shopify Inc SHOP.TO down 2.4%.

Pet Valu Holdings Ltd PET.TO shares tumbled nearly 14% to a record low after the pet food retailer's first-quarter profit fell on higher operating costs.