* Indexes up: Dow 1.26%, S&P 500 1.73%, Nasdaq 2.69%

* Paramount rises after DOJ clears Warner Bros acquisition

* Fox drops after $22 billion deal for Roku ( ROKU )

* CBOE Volatility Index falls to over one-week low

(Updates with mid-afternoon prices, analyst comment)

By Twesha Dikshit and Joel Jose

June 15 (Reuters) - Wall Street's main indexes rose on

Monday, with the Dow touching an intraday high after the United

States and Iran struck a preliminary agreement to end the Middle

East war and reopen the Strait of Hormuz, leading to a sharp

fall in crude prices.

The dealframework, however, did not address key issues such

as Tehran's nuclear program and the Israel-Lebanon conflict. The

pact is expected to be formally signed in Switzerland on Friday.

Crude prices plummeted 5% following the news and hit their

lowest level since March, aiding shares of energy-sensitive

airline and cruise stocks and hurting energy shares.

United Airlines rose 5.4%, while Delta Air Lines

and American Airlines ( AAL ) added 2.2% and 4.4%,

respectively. Norwegian Cruise and Carnival Corp ( CCL )

advanced about 4% each.

Shares of oil majors Exxon Mobil ( XOM ) and Chevron ( CVX )

fell almost 4%each. The S&P 500 energy index was down

3.4%.

The CBOE Volatility Index, Wall Street's fear gauge,

slipped to a more than one-week low at 16.35 points. It had

risen to a more than two-month high the previous week.

The three main indexes were on track for a third consecutive

session of gains, recovering after geopolitical tensions and a

pullback in AI-related stocks halted Wall Street's record climb.

"For markets, the Strait is the only thing that matters

because its blockage was most pernicious for the global

economy," said Thierry Wizman, global forex and rates strategist

at Macquarie Group.

Memory chipmakers were at record highs, with Micron

soaring 9.2% after multiple brokerages raised its price targets.

The Philadelphia SE Semiconductor index hit a record

high and rose 4.5%, with chip giant Nvidia ( NVDA ) up 3%.

Seven of the 11 major S&P 500 sectors were in the green,

with the S&P 500 tech index leading the advance with a

3.1% gain.

A resumption of oil flows from the Middle East and easing

crude prices could give the U.S. Federal Reserve, which is

grappling with inflation, room to hold interest rates steady

instead of raising borrowing costs.

"From a central bank perspective, this is more likely to

discourage any major policy changes going forward, especially

given that the shifts under consideration earlier were toward

raising interest rates," Wizman said.

Last week's inflation data showed higher energy costs

filtering into consumer inflation for May, sharpening focus on

the Fed's outlook at its policy meeting, due later this week,

which will be Chair Kevin Warsh's first since taking charge.

Traders expect the Federal Reserve to leave interest rates

unchanged this week, but have pared back expectations for a

25-basis-point hike by the end of the year to 70%, from fully

priced in the previous week, according to LSEG data.

At 11:24 a.m. ET, the Dow Jones Industrial Average

rose 647.45 points, or 1.26%, to 51,849.71, the S&P 500

gained 128.90 points, or 1.73%, to 7,560.36, and the Nasdaq

Composite added 694.46 points, or 2.69%, to 26,583.30.

SpaceX's shares were up almost 8% after the Elon

Musk-led firm ended its blockbuster IPO with a more than $2

trillion valuation.

Markets were relieved by the smooth trading during its

landmark Nasdaq launch, setting a new template for companies and

exchanges bracing for the highly anticipated OpenAI and

Anthropic IPOs expected later this year.

In other movers, Fox tumbled 16.7% after the

company said it would buy Roku ( ROKU ) in a $22 billion deal.

Advancing issues outnumbered decliners by a 2.31-to-1 ratio

on the NYSE and a 2.21-to-1 ratio on the Nasdaq.

The S&P 500 posted 38 new 52-week highs and three new lows,

while the Nasdaq Composite recorded 178 new highs and 51 new

lows.