** A sub-index of Australian energy stocks rises as much as 1.4% to its highest level since late-August

** Oil prices settled more than 3% higher overnight amid increased risk of a region-wide Middle East conflict

** Sector major Woodside Energy climbs 2% to a one-month high

** Santos rises as much as 2.2% to its highest level since late-August

** Coal miners Whitehaven Coal and Yancoal Australia advance as much as 2.9% and 2.7%, respectively

** As of last close, AXEJ down 10.4% this year vs an 8.1% rise in ASX 200 benchmark index

(Reporting by Himanshi Akhand in Bengaluru)

((Himanshi.Akhand@thomsonreuters.com;))