GLOBAL MARKETS-Stocks rise on earnings; oil up on Iran ships

> * World stocks gain on earnings optimism * Israel warning to Iran stokes oil, Swiss franc rally * Sterling falls after BoE inflation report (Adds details, updates prices) By Wanfeng Zhou NEW YORK, Feb 16 (Reuters) - World stocks reached 30-month highs on Wednesday on strong corporate earnings, while oil and the Swiss franc rallied after Israel said a move by Iranian warships to traverse the Suez Canal was a "provocation". The comments by Israel's foreign minister, together with reports of protests in Iran, Yemen and Bahrain, raised concern Middle East tensions could disrupt oil supplies. See [ID:nN16REASUR] and [ID:nLDE71F0T5] The MSCI world equity index .MIWD00000PUS rose 0.6 percent to 344.97, after hitting its strongest since August 2008. Brent crude jumped to 29-month highs and was last up $2.16 at $103.81 LCOc1. U.S.

"The comments by Israel's foreign minister, together with reports of protests in Iran, Yemen and Bahrain, raised concern Middle East tensions could disrupt oil supplies"crude CLc1 for March delivery rose 85 cents to $85.18 a barrel, extending gains after data showed crude oil and gasoline stockpiles rose less than expected last week. "Troubles in the Middle East are back on the agenda, protests in Bahrain and Saudi have drummed up political tension," said Rob Montefusco, an oil trader at Sucden Financial. Wall Street rose after estimate-beating results from technology bellwether Dell Inc. (DELL.O) and a flurry of deal news. The Dow Jones industrial average .DJI was last up 44.58 points, or 0.36 percent, at 12,271.14.

The Standard & Poor's 500 Index .SPX rose 5.77 points, or 0.43 percent, to 1,333.78. The Nasdaq Composite Index .IXIC gained 14.85 points, or 0.52 percent, to 2,819.06. European shares .FTEU3 posted a 29-month closing high for the third straight day, supported by strong earnings from French bank Societe Generale (SOGN.PA) and brewer Heineken (HEIN.AS). The gains followed an earlier jump in Japan's Nikkei average .N225 to a nine-month high. Emerging stocks .MSCIEF were up 0.4 percent.

"See [ID:nN16REASUR] and [ID:nLDE71F0T5] The MSCI world equity index .MIWD00000PUS rose 0.6 percent to 344.97, after hitting its strongest since August 2008""There is a growing confidence in the outlook for the global economy. The recovery looks like it is being transformed into a sustainable expansion and that does mean that the outlook for earnings is very positive," said Mike Lenhoff, chief strategist at Brewin Dolphin. 1 2 Next Stocks Currencies Bonds News Bonds Global Markets Tweet this Share this Link this Digg this Email Reprints