Updates

** Australian energy stocks .AXEJ up 0.1% at 0420 GMT in volatile session

** Earlier fell as much as 1%

** Woodside WDS.AX, Santos <STO.AX> & Karoon Energy KAR.AX gain between 0.7% and 1.6%, among top movers on sub-index

** Jarden ups valuation for WDS by 30% to A$34.00, Santos by 36% to A$8.00, "even the most oil-leveraged play" Karoon Energy KAR.AX by 60% to A$2.50

** Notes WDS, STO, KAR benefit from "geopolitical tailwind" as customers diversify from Middle East volatility

** Says equity markets show "muted reaction" compared to LNG price jump, with investors misreading supply delays as "non-event"

** Oil eased in early Friday trade after five-day gain on Strait of Hormuz disruption O/R

** AXEJ up 7.5% over the week, and 22.4% YTD

(Reporting by Shruti Agarwal & Sneha Kumar in Bengaluru)

((Sneha.kumar@thomsonreuters.com;))