GLOBAL MARKETS-European stocks rise, oil prices steady, government bond yields still high

* European stocks ⁠up after previous session's losses

* Oil prices stay elevated as Iran ​war disrupts supply, IEA warns of shortfall

* Market focus shifts to Trump-Xi meeting later in week

PARIS, May 13 (Reuters) - European stocks rose on Wednesday and Wall Street was set to ​open ‌higher as markets rebounded from the previous session's losses, although bond yields remained elevated as hopes dwindled for a peace deal between the U.S. and Iran.

Wall Street stocks fell from recent ⁠record highs on Tuesday, after U.S. inflation data showed consumer prices rose the most in ⁠three years, driven by an increase in energy-related costs.

The ​data highlighted the economic fallout from the U.S. and Israel's war on Iran, and pushed government bond yields up as traders saw it as increasing the chances that central banks will be forced to raise rates sooner than expected.

Market sentiment took a hit in Asian trade, but some signs of a recovery had emerged ​by 1102 GMT, ‌with Europe's STOXX 600 up 0.3%. London's FTSE 100 was little changed. Wall Street futures pointed to gains for U.S. stocks, with Nasdaq e-minis up 0.7%.

Still, the 10-year U.S. Treasury yield was at 4.4629%, after hitting its highest since late March. Japan's 5-year and 20-year government bond yields hit new record highs overnight.

Oil prices were little changed, with Brent crude up 0.2% at $108.03 a barrel and West Texas Intermediate down 0.1% at $102.11 a barrel.

The International Energy Agency said global oil supply ​will fall short of demand this year, as the war wreaks havoc on Middle East oil production. The two sides have made no progress on an agreement ‌to end hostilities and Israel has escalated its attacks in Gaza in the last five weeks.

Markets were in "wait-and-see" mode as attention turns to U.S. President Donald Trump's summit with Chinese counterpart Xi Jinping in Beijing later this ‌week, said Amelie Derambure, senior multi-asset portfolio manager at Amundi in Paris.

"The preferred scenario for the market would be if China can influence the ceasefire or the peace in Iran but it’s considered relatively unlikely," she said.

"This would be a positive surprise rather than the main scenario for markets at the moment."

On Tuesday, ​Trump said he did not think he would need China's help to end the war.

Some ships have been able to pass through the Strait of Hormuz, and Reuters reported on ‌Tuesday that both Iraq and Pakistan have cut deals with Iran to ship oil and liquefied natural gas from the Gulf, demonstrating Iran's ability to control energy flows through the strait.

Derambure said investors now expect the strait to open during the summer, but the market was "digesting the idea that the closure could last longer than ⁠was expected last ⁠week".

The surge in energy prices has helped corporate earnings in Europe and the U.S., but strained consumers.

U.S. ‌earnings have also been driven higher by technology companies' spending on investments related to artificial intelligence.

"There is still this belief that equities – except in a recession but that's on no one's radar for ​the moment – are better positioned to resist, ​or to perform decently, in this higher-inflation stronger-nominal-growth environment," Derambure added.

In Britain, gilt yields surged as Prime Minister Keir Starmer's ‌grip on power weakened. The 10-year yield was at 5.093%.

The dollar index was at 98.496, up 0.2% on the day and the euro was down 0.2% at $1.1711.

The Japanese yen was at 157.82 versus the U.S. dollar , having briefly spiked Tuesday on "rate check" speculation, often seen as a precursor to intervention.

Gold prices were down 0.4% at about $4,692 an ounce. (Reporting by Elizabeth Howcroft. Editing by Clarence Fernandez and Mark Potter)