Sawt Falasteen - Iran worries push up oil price as world stocks diverge

Tokyo closed at a record high and the yen fell on speculation over a snap election in Japan.

Paris and Frankfurt were in the red nearing the half-way mark, while London was flat.

Wall Street finished at another record high Monday, as investors shrugged off worries about a US criminal probe of the Federal Reserve central bank.

The heads of major central banks have thrown their support behind the US Fed and its chairman Jerome Powell, saying in a joint statement Tuesday that it was "critical to preserve" their independence.

On Sunday, Powell took aim at escalating pressure from President Donald Trump's administration to lower interest rates.

Investors were treading water ahead of the release of US inflation data later in the day.

"This is by far the most important metric for the Fed," said Kathleen Brooks, research director at XTB trading group.

"Today's data is expected to reset inflation expectations and be a clear indicator of what the Fed should do this year and how many rate cuts to expect," she added.

In Asia, Tokyo's Nikkei closed up 3.1 percent, driven by anticipation that Prime Minister Sanae Takaichi will capitalise on strong poll numbers by calling an election.

Takaichi was appointed Japan's first woman prime minister in October and her cabinet is enjoying an approval rating of around 70 percent.

But her ruling bloc has only a slim majority in parliament's powerful lower house, hindering her ambitious policy agenda.

Hong Kong also gained, while Shanghai closed lower.

Seoul climbed 1.5 percent after South Korean chip giant SK hynix said it would spend 19 trillion won ($12.9 billion) building an advanced chip packaging plant, as the firm rides the global AI boom.

Oil prices rose after US President Donald Trump announced a 25-percent tariff on any country trading with Iran, ramping up pressure on Tehran and its friends over its violent crackdown on a wave of protests.

Trump said in a social media post on Monday that the new levies would "immediately" hit the Islamic republic's trading partners who also do business with the United States.

The move "is likely to hit its biggest trading partners like China", said Victoria Scholar, head of investment at Interactive Investor.

In other company news, shares in Danish renewable energy firm Orsted climbed five percent after a US judge cleared the way for its offshore wind project to resume work in New England, nullifying a Trump administration order pausing the project.

- Key figures at around 1100 GMT -

London - FTSE 100: FLAT at 10,144.11 points

Paris - CAC 40: DOWN 0.5 percent at 8,316.16

Frankfurt - DAX: DOWN 0.1 percent at 25,368.69

Hong Kong - Hang Seng Index: UP 0.9 percent at 26,848.47 (close)

Shanghai - Composite: DOWN 0.6 percent at 4,138.76 (close)

Tokyo - Nikkei 225: UP 3.1 percent at 53,549.16 (close)

New York - Dow: UP 0.2 percent at 49,590.20 (close)

Euro/dollar: UP at $1.1667 from $1.1666 on Monday

Pound/dollar: UP at $1.3471 from $1.3466

Dollar/yen: UP at 158.89 yen from 158.17 yen

Euro/pound: DOWN at 86.62 pence from 86.63 pence

Brent North Sea Crude: UP 1.2 percent at $64.65 per barrel

West Texas Intermediate: UP 1.3 percent at $60.28 per barrel

R.Shaban--SF-PST