Updates with late afternoon trading

By Utkarsh Hathi, Purvi Agarwal and Niket Nishant

July 8 (Reuters) - Latin American assets fell on Wednesday after U.S. President Donald Trump said the interim accord to end the war against Iran was over, sending oil prices higher and denting global risk sentiment.

Trump also said that the U.S. was likely to launch more strikes on Wednesday night and take over Iran's Kharg Island, after Tehran carried out new attacks on U.S. bases in the Gulf.

The comments come a day after fresh U.S. military strikes and after Washington revoked a license that allowed Tehran to sell oil internationally. Oil prices, which had returned to pre-conflict levels after the ceasefire, rose 5.3% to a two-week high. O/R

Inflation worries were back in the limelight, especially in oil-importing economies. International bonds in oil importers Kenya and Sri Lanka broadly dropped over 1 cent on the dollar.

"The bigger issue for investors is the upcoming inflation read-through... the ceasefire had helped contain some of the risk premium in oil; its collapse puts energy prices back at the center of the market outlook," said Lale Akoner, global market strategist for eToro.

"For now, this looks more like a repricing of risk than a fundamental change in the market outlook."

A global selloff in risk assets ensued with Wall Street trading lower. In LatAm, attention shifted back to geopolitical risks after weeks of domestic catalysts driving markets in the region.

Oil giants such as Brazil's Petrobras PETR4.SA and Colombia's Ecopetrol ECOPETROL.CN gained 3.1% and 3.3% respectively, cushioning some losses on the Brazilian .BVSP and Colombian .COLCAP benchmark indexes. Mexican equities .MXX were flat.

The broader MSCI Latin American currency index .MILA00000CUS edged 0.2% lower, while the stocks equivalent .MILA00000PUS declined 0.8%.

However, Derrick Irwin, co-head of intrinsic emerging markets equity at Allspring Global Investments, cautioned against overreaction.

"The direction of travel remains towards some sort of resolution, and that probably helps oil prices stay contained," he said.

The International Monetary Fund on Wednesday inched its 2026 global growth forecast lower again to 3.0%, warning of ongoing risks posed by the war in the Middle East, trade fragmentation and potential corrections in market expectations for AI.

The dollar index =USD fell 0.2%. Concerns about high inflation mounted at the U.S. Federal Reserve's meeting last month, minutes of the session showed.

The Mexican peso MXN= fell 0.2%, while Peru's sol PEN= traded 0.3% lower. Chile's peso CLP= trimmed some losses and was last down 0.2% after hitting its lowest since March 27, tracking weakness in copper prices. MET/L

Argentina's peso ARS=RASL rose 0.4%, while stocks .MERV lost 0.5%.

Elsewhere, central banks in Poland and Romania held interest rates steady. The National Bank of Poland said it might intervene in the FX market.

Key Latin American stock indexes and currencies:

Equities	Latest	Daily % change
MSCI Emerging Markets .MSCIEF	1678.52	-0.52
MSCI LatAm .MILA00000PUS	2943.29	-0.79
Brazil Bovespa .BVSP	170790.79	-0.71
Mexico IPC .MXX	66632.98	-0.06
Chile IPSA .SPIPSA	10916.85	-0.98
Argentina MerVal .MERV	3207107.99	-0.524
Colombia COLCAP .COLCAP	2295.22	0.03

Currencies	Latest	Daily % change
Brazil real BRL=	5.1465	0.22
Mexico peso MXN=	17.5449	-0.2
Chile peso CLP=	931	-0.15
Colombia peso COP=	3334.48	-0.12
Peru sol PEN=	3.4057	-0.26
Argentina peso (interbank) ARS=RASL	1,487.0	0.37
Argentina peso (parallel) ARSB=	1,490.0	1.68