Updates with afternoon trading

By Utkarsh Hathi, Purvi Agarwal and Niket Nishant

July 9 (Reuters) - Latin American stocks and currencies recovered on Thursday as easing oil prices supported risk sentiment, even as renewed U.S.-Iran hostilities kept investors on edge.

Tehran launched attacks on U.S. military infrastructure in Gulf states after U.S. strikes on Iran, while Iran's Revolutionary Guards said the conflict was disrupting the gradual opening of the Strait of Hormuz.

Still, crude prices declined 2.9%, reversing gains from earlier in the session. Markets were hopeful that the new strikes would not lead to prolonged oil supply disruption even though the fragile U.S.-Iran peace deal hangs in the balance.

"Investors appear relatively unrattled by President Trump's assertion that as far as he's concerned, the U.S.-Iran ceasefire is over... The overall feeling appears to be that this is simply another Trump ploy to get a little bit more of what he wants," said David Morrison, senior market analyst at Trade Nation.

"Either both sides find a way to come back to the negotiating table, or the U.S. simply repeats its threat to 'bomb Iran back to the stone age'".

In Latin America, most currencies appreciated against the dollar, with MSCI's Latin American currency index .MILA00000CUS up 0.7%. The corresponding gauge for equities .MILA00000PUS was up 1.4%.

Colombia's peso COP= led the charge, gaining 1.2%. Equities in the country, .COLCAP, however were dragged down.

Colombian assets have largely been in favor on hopes of Abelardo De La Espriella winning the presidential election.

Currencies in Chile CLP= and Brazil BRL= added 0.7% and 0.6% respectively. Brazilian stocks .BVSP gained 1.2%, while Chile's .SPIPSA was pushed 0.7% higher by copper prices hitting a two-week high.

Brazil's finance minister Dario Durigan said on Thursday that the decision on removing the gasoline subsidy has been postponed till next week, citing uncertainty in the Middle East.

Mexico's peso MXN= gained 0.2%, in-line with broader markets. Data showed annual inflation in the country hit the lowest level in over five years in June and settled into the central bank's target range, reducing the pressure to hike rates.

However, Capital Economics' senior emerging markets economist Kimberley Sperrfechter said data for the rest of the year may not be as benign.

"June probably marked the trough. We think inflation will trend higher over the coming months," she said.

Among equities, Peru .MXNUAMPESCPGPE gained 1.9%, ahead of a local central bank decision where it is widely expected to keep interest rates steady.

Markets in Argentina were closed for a public holiday.

Elsewhere, Poland's central bank governor did not rule out a rate cut of 25 basis points after the summer, although he ruled out two cuts this year.

Key Latin American stock indexes and currencies:

Equities	Latest	Daily % change
MSCI Emerging Markets .MSCIEF	1676.66	-0.05
MSCI LatAm .MILA00000PUS	2975.53	1.42
Brazil Bovespa .BVSP	172653.79	1.17
Mexico IPC .MXX	66215.79	-0.59
Chile IPSA .SPIPSA	11022.1	0.7
Colombia COLCAP .COLCAP	2296.92	-0.69

Currencies	Latest	Daily % change
Brazil real BRL=	5.1229	0.53
Mexico peso MXN=	17.5413	0.2
Chile peso CLP=	929.79	0.43
Colombia peso COP=	3308.63	0.93
Peru sol PEN=	3.3999	0.18