* Indexes up: Dow 1.15%, S&P 500 1.59%, Nasdaq 2.52%

* 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 after market open)

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 their war

and reopen the Strait of Hormuz, leading to a sharp fall in

crude prices.

The framework for a deal, however, did not address key

issues such as Tehran's nuclear program and the conflict between

Israeland Lebanon. The pact is expected to be formally signed in

Switzerland on Friday.

Crude prices slid about 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 6.4%, while Delta Air Lines

and American Airlines ( AAL ) added 4.1% and 5.2%,

respectively. Norwegian Cruise and Carnival Corp ( CCL )

advanced 5.2% each.

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

fell about 5%each. The S&P 500 energy index was down

3.9%.

The CBOE Volatility Index, considered Wall Street's

fear gauge, slipped to a more than one-week low at 16.31 points.

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

The three main indexes were on track for a third straight

session of gains, recovering after geopolitical tensions and a

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

"The hope is that maybe with some pressure off of

inflation... at some point, the Federal Reserve may be able to

cut interest rates," said Robert Pavlik, senior portfolio

manager at Dakota Wealth.

"This is a much better environment for equities going

forward."

Chip stocks moved higher, with Micron soaring 9%

after multiple brokerages raised its price targets, while Nvidia ( NVDA )

was up 2.3%, Intel ( INTC ) added 5.2% and Marvell

Technology ( MRVL ) rose 5.5%.

The Philadelphia SE Semiconductor index gained 4.8%,

while the S&P 500 tech index rose 2.9%.

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

with technology shares leading gains.

A resumption of oil flows from the Middle East and easing

crude prices could give the U.S. Federal Reserve room to

maneuver as it grapples with inflation.

Last week's inflation data showed higher energy costs

filtering into consumer inflation for May, sharpening focus on

the central bank's outlook at its policy meeting, due later this

week, which will be Chair Kevin Warsh's first since taking

charge.

Traders expect the Fed 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 09:54 a.m. the Dow Jones Industrial Average rose

590.87 points, or 1.15%, to 51,793.13, the S&P 500 added

118.27 points, or 1.59%, to 7,549.73, and the Nasdaq Composite

gained 651.90 points, or 2.52%, to 26,540.74.

SpaceX's shares rose 7.9% 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, Paramount Skydance's ( PSKY ) shares rose

3.4% after the U.S. Justice Department cleared its Warner Bros

acquisition.

Fox tumbled 18.2% after the company said it would

buy Roku ( ROKU ) in a $22 billion deal. The streaming platform

fell 2.5%.

Advancing issues outnumbered decliners by a 3.08-to-1 ratio

on the NYSE and a 3.39-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 165 new highs and 32 new

lows.