Updates with late afternoon trading

By Ragini Mathur, Avinash P and Purvi Agarwal

June 15 (Reuters) - Latin American currencies and stocks were mixed on Monday, with some assets stabilizing in afternoon trading as markets digested a U.S.-Iran framework peace deal that lifted global risk appetite and sent oil prices lower.

U.S. President Donald Trump said a preliminary agreement to end the war in the Gulf has already been signed by the United States and Iran, though details have yet to be made public.

The news comes a day after officials said the deal would end the war, lift the U.S. blockade of Iran and reopen the Strait of Hormuz, a key route for global oil shipments.

Brent crude futures LCOc1 slumped more than 4% to about $83 a barrel. Investors cheered the truce as gradual restoration of shipping through the Strait could reduce energy-driven inflation risks and weaken the case for interest rate hikes.

"The agreement is closer to a memorandum of understanding (MOU) than a final deal ... However, all markets really care about at this stage is the Strait opening," Ashmore analysts said.

"'Deal or no deal' oscillations have been incessant over recent weeks and months, but oil prices dropping this quickly is clearly an important signal."

MSCI's Latin American stocks index .MILA00000PUS was flat in afternoon trading, while the currencies gauge .MILA00000CUS was up 0.1%, after hitting a one-month high.

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Investors are watching the U.S. Federal Reserve's decision this week as it could set the tone for the dollar and consequently Latin American currencies through the week. Decisions in Brazil and Chile will also be watched.

Brazil's real BRL= reversed gains to weaken 0.2% against the dollar. Its main stock index .BVSP fell 0.4%, dragged down by a 5% decline in state oil giant Petrobras PETR4.SA.

Latin America's biggest economy will vote in October, with current President Luiz Inácio Lula da Silva leading opinion polls, after right-wing challenger Flavio Bolsonaro's chances were hurt by a report linking him to a disgraced banker.

Brazilian assets are susceptible to headlines that raise doubts over a market-friendly government coming to power, as the country has been reeling under deteriorating public finances and high interest rates under the Lula administration.

"The real is still likely to weaken, though high interest rates should support it, provided fiscal risks are reined in," said Enestor Dos Santos, global economist at BBVA Research.

"Risks mainly stem from this year's general elections, relations with the U.S., and fiscal accounts."

Brazil Finance Minister Dario Durigan said the country would use its strongest arguments against a proposed 25% U.S. tariff on many Brazilian imports.

In Chile, stocks .SPIPSA pared gains to trade 0.2% higher, after hitting a more than one-month high. Chile's peso CLP= outperformed peers with a 0.8% advance and was set for its fifth session of gains - its longest since late January. An uptick in copper prices partly aided the rise. MET/L

Meanwhile, Colombia is headed for a June 21 runoff between leftist Ivan Cepeda and right-winger Abelardo De La Espriella. The government on Friday maintained its 2026 growth forecast at 2.6% and projected a 2.2% expansion in 2027.

Markets in Argentina and Colombia were closed for public holidays.

Key Latin American stock indexes and currencies:

Latin American market prices from Reuters
Equities	Latest	Daily % change
MSCI Emerging Markets .MSCIEF	1762.75	2.73
MSCI LatAm .MILA00000PUS	3010.14	0.05
Brazil Bovespa .BVSP	170525.24	-0.35
Mexico IPC .MXX	68220.01	0.39
Chile IPSA .SPIPSA	10946.3	0.23
Argentina Merval .MERV	-	-
Colombia COLCAP .COLCAP	-	-
Currencies	Latest	Daily % change
Brazil real BRL=	5.0661	-0.15
Mexico peso MXN=	17.2165	-0.06
Chile peso CLP=	891.15	0.84
Colombia peso COP=	-	-
Peru sol PEN=	3.3996	0.02
Argentina peso (interbank) ARS=RASL	-	-
Argentina peso (parallel) ARSB=	-	-