US STOCKS-Wall Street falls as Middle East turmoil, weak jobs report weigh

* Indexes off: Dow 1.20%, S&P 500 1.07%, Nasdaq 0.85%

* BlackRock (BLK) limits withdrawals as redemptions rattle private credit fund

* Marvell Technology shares jump on strong 2028 forecast

* Fed's Waller: current oil price shock to not fuel persistent inflation (Updates with midday prices)

By Johann M Cherian and Ragini Mathur

March 6 (Reuters) - Wall Street's main indexes fell on Friday, with the financials-heavy Dow touching a more than three-month low, as the conflict raging in the Middle East threatened to fuel inflation and data showed the economy unexpectedly shed jobs in February.

Signs of a weakening jobs market came amid a strike by healthcare workers and harsh winter weather. The unemployment rate increased to 4.4%.

Traders pulled forward bets for a 25-basis-point interest rate cut by the Federal Reserve, with odds at about even for June, from about 35% earlier in the day, according to LSEG-compiled data.

"Given the developments in the Middle East and the spike in energy prices, I felt that the first rate cut was likely coming in September," said Jeff Schulze, head of economic and market strategy at ClearBridge Investments.

"But given the renewed weakness in the labor market, that brings in both sides of the Fed's dual mandate into the equation. I do think that the first rate cut will come in July at this point."

The Fed's dual mandate is to balance both prices and the labor market.

Meanwhile, the Middle East conflict pushed up oil prices the most this week since Russia's 2022 invasion of Ukraine, bringing shipping through the strategic Strait of Hormuz to a halt.

Brent crude prices hit $90 a barrel, sending the S&P 500's passenger airlines subindex on track for a near 13% weekly drop.

Natural gas producer Qatar said it would take "weeks to months" to resume normal deliveries even in the case of an immediate ceasefire, according to a report, and that all Gulf energy producers could shut down exports within weeks, driving oil to $150 a barrel.

At 11:44 a.m. ET, the Dow Jones Industrial Average fell 577.08 points, or 1.20%, to 47,377.66, the S&P 500 lost 72.78 points, or 1.07%, to 6,758.27 and the Nasdaq Composite lost 194.43 points, or 0.85%, to 22,554.56.

Losses were broad on the S&P 500, while banks tanked 2.7% and touched a more than four-week low on jitters in the private credit market.

Asset manager BlackRock (BLK) lost 5.6% after limiting withdrawals from a flagship private credit fund after redemption requests surged, joining rival Blackstone earlier this week.

Lender Western Alliance fell 12.9% after suing Jefferies for not making a payment for loans tied to bankrupt auto parts supplier First Brands Group. Jefferies dropped 8.7%.

The CBOE volatility index hit a four-month high, while the rate-sensitive Russell 2000 index dropped 1.8%.

Among others, chip company Marvell Technology jumped 21% after forecasting fiscal 2028 revenue above estimates.

Despite the gloomy mood, U.S. stocks have fared better than Asian and European markets this week, aided by a jump in tech stocks and as the country is a net exporter of oil.

"The Mideast (conflict) was in favor of the U.S. stock market, at least until this morning's (jobs) report. We've seen the safe-haven trade into the dollar and the U.S. market did hold up better. So to me over the past year that 'Sell-America' theme has ebbed and flowed," said Gary Schlossberg, global strategist at Wells Fargo Investment Institute.

Federal Reserve Governor Christopher Waller said on Bloomberg Television that the jump in oil prices need not lead to persistent inflation or warrant a change in monetary policy.

Declining issues outnumbered advancers by a 4.02-to-1 ratio on the NYSE and by a 2.69-to-1 ratio on the Nasdaq.

The S&P 500 posted five new 52-week highs and three new lows, while the Nasdaq Composite recorded 36 new highs and 115 new lows. (Reporting by Johann M Cherian and Ragini Mathur in Bengaluru; Editing by Devika Syamnath and Maju Samuel)