GLOBAL MARKETS-Stocks hold near record highs, oil falls as markets weigh US-Iran peace progress

* Oil falls, safe-haven dollar steady

* Iran state TV says potential deal could ​reopen Strait of ⁠Hormuz in a month

* Gold hits two-month low on rising rate hike ​bets

* Yen hovers near intervention territory

NEW YORK, May 27 (Reuters) - Wall Street stocks showed little conviction Wednesday, drifting along near record highs, while crude oil prices retreated as investors eyed possible progress in U.S.-Iran peace ​negotiations.

All ‌three major U.S. stock indexes wavered in early trading with a pullback in chip stocks weighing on the Nasdaq, while Treasury yields eased on hopes that the months-long blockade of the Strait of Hormuz ⁠could soon be lifted, easing fears that the resulting energy price squeeze could metastasize into higher inflation, ⁠and in turn, tighter monetary policy.

Iran's state TV said it ​obtained a draft of an unofficial framework of an initial understanding between Washington and Tehran toward ending the conflict, which would entail Iran restoring shipments through the crucial waterway to pre-war levels within a month. The White House said the report was false.

"Regarding news reports that Iran may reopen the strait in a month, I'm not sure that's something anybody's going to ​get excited over," said ‌Oliver Pursche, senior vice president at Wealthspire Advisors, in New York. "As we've seen, a lot can happen in a month."

This follows claims from Iran on Tuesday that the United States violated the ceasefire, potentially complicating peace efforts. For its part, Washington insisted its recent strikes were defensive in nature.

As of Wednesday, however, the fragile truce remained intact, offering hope that a deal could be imminent.

Financial markets are currently pricing in a 38.1% likelihood that the U.S. Federal Reserve will raise interest rates in December according to CME's FedWatch tool, ​which showed zero possibility of a December rate hike one month ago.

The Dow Jones Industrial Average rose 365.54 points, or 0.72%, to 50,827.22, the S&P 500 rose 0.02 points, or 0.01%, ‌to 7,519.79 and the Nasdaq Composite fell 75.16 points, or 0.27%, to 26,585.03.

European shares, enjoying a boost from auto and chemical stocks, hovered near all-time highs even as market participants kept a wary eye on Middle East tensions.

MSCI's gauge of ‌stocks across the globe rose 1.32 points, or 0.12%, to 1,122.74.

The pan-European STOXX 600 index slipped 0.05%, while Europe's broad FTSEurofirst 300 index lost 0.73 points, or 0.03%.

Emerging market stocks rose 20.17 points, or 1.17%, to 1,740.58.

Crude oil prices dropped on signs of progress in U.S.-Iran peace talks.

"Oil is off its high at this point, I think oil is ​getting closer to where it ought to be, given that it doesn't appear that (the war) is going to escalate from here and that everybody's looking for an off-ramp," Pursche added.

U.S. crude fell 4.61% to $89.56 a ‌barrel and Brent fell to $95.54 per barrel, down 4.06% on the day. U.S. Treasury yields edged lower on continued signs of progress in Middle East peace talks.

The yield on benchmark U.S. 10-year notes fell 2 basis points to 4.471%, from 4.491% late on Tuesday.

The 30-year bond yield fell 1.8 basis points to 5.0059% from 5.025% late on Tuesday.

The 2-year note yield, ⁠which typically moves ⁠in step with interest rate expectations for the Federal Reserve, fell 1.5 basis points to 4.035%, from 4.05% late ‌on Tuesday.

The dollar held steady after Tuesday's uptick, while the yen slid to its weakest against the greenback since late April, brushing against levels that triggered an official Japanese intervention last month as investors eyed a potential ​flare-up of turmoil in the Middle East.

The dollar ​index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.07% to 99.04, with ‌the euro up 0.19% at $1.165.

Against the Japanese yen, the dollar strengthened 0.06% to 159.38.

In cryptocurrencies, bitcoin fell 1.48% to $74,892.70. Ethereum declined 0.82% to $2,058.86.

Gold prices declined to a two-month low as war-related inflation increased the odds that the Fed could hike interest rates this year.

Spot gold fell 1.31% to $4,447.05 an ounce. U.S. gold futures fell 1.35% to $4,439.70 an ounce.