Updates with afternoon levels

By Avinash P and Ragini Mathur

June 12 (Reuters) - Most Latin American assets rose on Friday, swept up in a global risk-on rally, as hopes grew for an imminent agreement to end the months-long conflict in Middle East.

The United States and Iran signalled that an agreement to end their war was close, with a senior U.S. administration official saying a draft text was in place that both sides supported.

The prospect of a deal helped calm markets after Tehran's closure of the Strait of Hormuz, a crucial artery for global energy shipments, sent oil prices surging and raised fears of a broader inflation shock. Crude prices fell more than 3% on the day.

MSCI's index tracking Latin American stocks .MILA00000PUS gained 1.8%, while the corresponding currency gauge .MILA00000CUS rose 1.2%. Both indexes were headed for weekly gains.

Peruvian assets extended gains after the nation's electoral authority began reviewing contested ballots in the country's presidential runoff election, with the initial count virtually complete and the two candidates separated by the thinnest of margins.

Conservative candidate Keiko Fujimori, who is favored by financial markets for her business-friendly program, inched into the lead on Wednesday over leftist rival Roberto Sanchez of about 600 votes out of 18 million.

"The country has some of the strongest fundamentals in LAC (Latin America and the Caribbean), and with a steadier hand at the wheel, that enhanced stability could boost investment and economic growth, and lead to credit rating upgrades, further solidifying the country's macro strength," said Geronimo Mansutti, senior Latin American credit analyst at investment research firm Tellimer.

Meanwhile, Peru's central bank held its benchmark interest rate at 4.25%, as widely expected.

Peru's stocks benchmark .MXNUAMPESCPGPE rose 2.3% and the sol currency PEN= firmed against the U.S. dollar.

Brazil's consumer inflation accelerated more than expected in May, official data showed, breaching the top of the central bank's target range for the first time since October ahead of a key rate decision next week.

The data comes ahead of the country's central bank's June 16 to 17 policy meeting. The bank's rate-setting committee, known as Copom, eased its key Selic interest rate by 25 basis points to 14.50% at its April meeting, but left its next move open.

"The further rise in inflation last month, coming alongside fiscal support and strong growth, sets up a tricky decision for Copom next week. We think that it will pause the easing cycle," said Kimberley Sperrfechter, senior emerging markets economist at Capital Economics.

Brazil's Bovespa .BVSP edged 0.2% lower, while the real BRL= strengthened 0.6%.

Colombia's peso COP= slipped 0.3% after hitting its strongest level in more than five years on Thursday.

Bonds of major oil-importing emerging economies also rallied on hopes for a Middle East peace deal, with Kenya's sovereign bonds adding more than 2 cents, Tradeweb data showed, Tradeweb data showed.

Key Latin American stock indexes and currencies:

Stock indexes	Latest	Daily % change
MSCI Emerging Markets .MSCIEF	1716.54	3.13
MSCI LatAm .MILA00000PUS	3010.87	1.79
Brazil Bovespa .BVSP	171206.38	-0.17
Mexico IPC .MXX	67926.43	1.42
Chile IPSA .SPIPSA	10910.07	1.57
Argentina MerVal .MERV	3356116.18	0.09
Colombia COLCAP .COLCAP	2385.41	1.47
Currencies	Latest	Daily % change
Brazil real BRL=	5.0625	0.63
Mexico peso MXN=	17.2109	0.17
Chile peso CLP=	897.77	0.44
Colombia peso COP=	3490.11	-0.27
Peru sol PEN=	3.3948	0.1
Argentina peso (interbank) ARS=RASL	1,428.5	0.28
Argentina peso (parallel) ARSB=	1,440.0	0.69